Under the Federal Family Education Loan Program, as provided pursuant to the Federal Higher Education Act of 1965, state guarantee agencies or private nonprofit corporations administer programs which guarantee reimbursements to holders of student loans for losses on defaulted guaranteed student loans. Such guarantee agencies have entered into insurance agreements with the U.S. Department of Education under which the U.S. Department of Education agrees to reimburse the guarantee agencies for the amounts expended by them on the guarantee payments to holders of guaranteed student loans. Pursuant to the Federal Higher Education Act, in the event any of the guarantee agencies become unable to meet their obligations on guarantee claims submitted by holders of guaranteed student loans, such holders may submit claims directly to the U.S. Department of Education which will pay principal and interest on those claims as provided under the federal law. This allows for the seasonal outflows and surges of cash many businesses and associations realize. Funds can be directed to us by wire transfer, through a bank transfer deposit to a Union Bank correspondent bank or by check.
Income is paid weekly, monthly, quarterly, semiannually, or annually.
Transactional statements showing investments, withdrawals and interest paid will be mailed weekly or monthly, whichever you prefer. Statements identifying the assets owned in trust in your account are available quarterly. Copies of each investment and withdrawal instruction will be mailed after each transaction. It is our objective to provide an asset mix representative of the securities and loans available which will maximize income while maintaining quality, security and liquidity. This will ensure credit is given to the proper investment account.