AE9 Notice of Intent to Participate

LOAN PURCHASE PROGRAMS ELECTRONIC ANNOUNCEMENT #9
Date: July 30, 2008
To:

FFEL Program Community

From:

Larry Warder, Acting Chief Operating Officer, Federal Student Aid

Subject: Notices of Intent to Participate in Loan Purchase Commitment Program and Loan
Participation Purchase Program – Reminder
As July 31 approaches, we want to remind FFEL Program participants that any lender (including
a school lender) that wishes to participate in either or both of the Loan Purchase Programs (the
Loan Purchase Commitment Program and the Loan Participation Purchase Program) must file a
“Notice of Intent to Participate” (NOI). As explained in the July 1, 2008 Federal Register
Notice that announced the programs (modified on July 17, 2008), any lender that may choose to
participate in either program, or that may transfer loans it originates to other lenders that may
want to participate in either program, must submit an NOI.
We stress first that an originating lender must timely file its NOI in order for the loans it
originated to be eligible for either program. The Department will not purchase a loan, or a
participation interest in a loan, that was first disbursed prior to the date on which the Department
received the NOI from the originating lender. The only exception is that the Department will
purchase loans, or interests in loans, first disbursed on or after May 1, 2008 if the originating
lender’s NOI is received on or before July 31, 2008. If the NOI of the originating lender is
received after July 31, 2008, the Department will purchase only those loans, or interests in those
loans, for which the first disbursement was made on or after the date the Department received the
NOI from that originating lender.
We also stress that a secondary market or other subsequent holder must also timely file a Notice
of Intent to Participate in order to sell to the Department loans, or interests in loans, it acquires.
For such a holder, both the date on which it submitted its own NOI and the date on which the
originating lender submitted its NOI control which loans the holder may include in the Loan
Purchase programs. First, the Department will only purchase a loan, or an interest in a loan,
from a subsequent holder if the loan was acquired by that holder on or after the date the
Department received that holder’s NOI. In addition, the Department will purchase such loans
only if the loan was first disbursed either after the date on which the NOI of the originating
lender was received, or, if the originator’s NOI is received on or before July 31, 2008, on or after
May 1, 2008.
Therefore, we encourage all FFEL lenders and entities that purchase FFEL loans from
originating lenders to file their Notices of Intent to Participate in a timely manner. As we have
noted earlier, while the submission of a Notice of Intent to Participate does not bind the lender or
holder to actually sell loans or to place loans in a participation interest facility, it does reserve
those choices for both the originating lender and for any subsequent holder.

Included as an attachment to this memo is the copy of the Notice of Intent to Participate that
should be completed, signed, dated and sent as a PDF attachment to an e-mail message addressed
to [email protected]. The e-mail message subject line should read “Submission of
Notice of Intent to Participate.” Of course, entities that have already submitted Notices of Intent
to Participate need not re-submit.
For questions concerning the submission and receipt of the email please call (202) 377-4401.

NOTICE OF INTENT TO PARTICIPATE
[__________, 200_]
U.S. Department of Education
Washington, D.C.
By: E-mail: [email protected]
Re: Loan Purchase Commitment Program and/or Loan Participation Purchase
Program for Eligible FFELP Loans
Ladies and Gentlemen:
The undersigned, an eligible Federal Family Education Loan Program (FFELP) lender under
Section 435(d)(1) of the Higher Education Act of 1965, as amended (HEA), eligible lender
trustee, or holder of beneficial interests in FFELP Loans (“Undersigned”), hereby notifies the
United States Department of Education that it intends to participate in one or both of the
following FFEL Loan Purchase programs for the 2008-2009 academic year. The Loan Purchase programs
are authorized under Section 459A of the HEA as amended by the Ensuring Continued
Access to Student Loans Act of 2008 (Pub. L. No. 110-227), and described in the Notice of
Terms and Conditions of Purchase of Loans under the Ensuring Continued Access to Student
Loans Act of 2008 (Register Notice) published in the Federal Register, Vol. 73, No. 127, July 1,
2008. Signifying intent to participate in one or both of the programs offered does not require
actual participation in such programs.
CHECK THE APPLICABLE BOX(ES):

□

Loan Purchase Commitment Program

□

Loan Participation Purchase Program and the
Loan Purchase Commitment Program

By signifying its intent to participate in such program(s), the Undersigned hereby certifies and
agrees that:

1. If the Undersigned participates in either of the programs, it will continue to originate or
acquire FFELP loans made to students and parents.

2. If the Undersigned participates in the Loan Participation Purchase Program, it will sell,
from time to time, participation interests in FFELP loans to the Department of Education
with an aggregate unpaid principal balance of not less than $50,000,000 in loans either
held by such eligible lender or aggregated with other FFELP loans held by one or more
eligible lenders. Note that there is no minimum for the Loan Purchase Commitment
Program.

3. The Undersigned acknowledges that it shall not be permitted to sell FFELP loans or
participation interests therein to the Department of Education with respect to which the
first disbursement was made prior to the date on which the Department of Education
receives this Notice of Intent to Participate, except that, if the Department of Education
receives this Notice of Intent to Participate by July 31, 2008 the Undersigned shall be
permitted to sell to the Department of Education FFELP loans or participation interests
therein, as applicable, where the first disbursement of the loan(s) was made on or after
May 1, 2008.

For the purpose of item 3 above, the Department of Education will return to the Undersigned, via
electronic mail (e-mail), information indicating the date the Notice of Intent to Participate was
received by the Department of Education.
The Department of Education has provided that it will accept signed copies of this Notice of
Intent sent as a PDF attachment via e-mail at the address below.
The Undersigned is aware that it must refer to the Federal Register Notice and to the agreements
referred to therein for a complete description of the terms and conditions under which the
Department of Education will administer the Loan Purchase Programs. The Undersigned also is
aware that in order to participate in the Loan Purchase programs it must execute a Master
Agreement for the respective program. If the Undersigned is a beneficial holder of FFELP loans,
include on this form the LID(s) under which it operates. If the Undersigned, as an eligible lender
trustee, files this Notice on behalf of its beneficial holders of FFELP loans, include the name and
LID of each of those beneficial holders.
This Notice of Intent to Participate is hereby executed and dated as of the date first listed above.
By executing this Notice of Intent, the Undersigned now possesses an option to participate in the
Loan Purchase Program or Programs indicated by the Undersigned above.
The Undersigned asks that the Department of Education please direct all inquiries and
correspondence relating to these programs to:
[UNDERSIGNED NAME AND LENDER ID NUMBER (LID)]
[ELIGIBLE LENDER TRUSTEE NAME OR BENEFICIAL
HOLDER NAME, IF ANY AND LIDS]
[STREET ADDRESS]
[CITY], [STATE] [ZIP]
Attention of: [NAME], [TITLE]
By Phone - [XXX-XXX-XXXX]
By Fax – [XXX-XXX-XXXX]
By E-mail – [email address]
[NAME OF ENTITY]
By:________________________
Name:
Title:
The completed, signed, and dated Notice of Intent to Participate should be sent as a PDF
attachment to an e-mail message addressed to [email protected]. The e-mail
message subject line should read “Submission of Notice of Intent to Participate.”
For questions concerning the submission and receipt of the email please call (202) 377-4401.