Notice of Terms and Conditions of Purchase of Loans under the Ensuring Continued Access to Student Loans Act of 2008. (JH)

LOAN PURCHASE PROGRAMS ELECTRONIC ANNOUNCEMENT #10
Date: August 1, 2008
To:

FFEL Program Community

From: Larry Warder, Acting Chief Operating Officer
Federal Student Aid
Subject: Document Submission Process for the Loan Participation Purchase Program
In an electronic announcement posted on July 25, 2008, we attached revised copies of the Master
Participation Agreement and the Master Loan Sales Agreement (the Agreements). The
Agreements must be executed by a FFEL lender/holder who wishes to participate in the Loan
Purchase Programs that were announced in a Federal Register Notice, published on July 1, 2008
and modified on July 17, 2008. In addition to providing the details of each of the Loan Purchase
Programs each agreement describes, and provides as Exhibits, the documents that a FFEL lender
or holder must execute and submit to the Department if it wishes to participate in that program.
Now that the Agreements have received Office of Management and Budget approval (OMB
1845-087), eligible FFEL Program lenders/holders may begin submitting required documents to
the Department for participation in the programs. The procedures in the attachment to this
memorandum relate to the submission by a lender or holder of only the initial documents needed
to execute a Master Participation Agreement under the Loan Participation Purchase Program. In
subsequent announcements we will provide information on how other documents and data sets
are to be submitted. We will also be providing, at a later time, information on document
submission procedures for the Loan Purchase Commitment Program.
For complete and current information on the Loan Purchase Programs please visit
www.federalstudentaid.ed.gov/ffelp.
Thank you for your continued support of these FFEL Loan Purchase Programs.
Attachment

United States Department of Education
Federal Family Education Loan Program
Master Participation Agreement
Under the
Loan Participation Purchase Program

INITIAL DOCUMENT SUBMISSION INSTRUCTIONS
AUGUST 1, 2008

This document provides information and guidance to FFEL lenders/holders that wish to execute
a Master Participation Agreement with the U.S. Department of Education (the Department) for
the purpose of offering to the Department participation interests in certain FFEL loans made for
the 2008-2009 academic year under the Loan Participation Purchase Program.
The procedures below relate only to the submission by a lender or holder of the initial documents
needed to execute a Master Participation Agreement with the Department. In subsequent
announcements we will provide information on how other documents and data sets will be
submitted and acknowledged.
PRELIMINARY SUBMISSION
Notice of Intent to Participate (Exhibit H of the Master Participation Agreement)

As noted in earlier communications on this subject, the first step that a lender or loan holder must
take if it wants to reserve its option to participate in either of the Loan Purchase Programs is to
submit to the Department a “Notice of Intent to Participate”. The format and wording for this
letter is provided as Exhibit H to the Master Participation Agreement (and as Exhibit F to the
Master Loan Sales Agreement). As also noted in earlier communications, while the submission
of a Notice of Intent to Participate does not bind the lender to sell loans or participation interests,
it does reserve those choices for both the originating lender and for any subsequent holder of
Eligible Loans as defined in the Agreements. Therefore, the submission of a Notice of Intent to
Participate by an originating lender is critical even if that lender will not be participating in the
program. This is because, also as noted in earlier communications, the eligibility of a loan to be
included in the program by a subsequent holder is determined by the date the originating lender
filed its Notice of Intent to Participate.

Master Participation Agreement
Initial Document Submission Instructions
Page 2
The Notice of Intent to Participate must be submitted to the Department by any FFEL
participating lender, including an entity participating in the FFEL Program as a beneficial holder
under an Eligible Lender Trustee agreement, following the instructions provided on Exhibit H of
the Master Participation Agreement. The form should be submitted as a PDF attachment to an
email sent to the Department at [email protected].
Upon receipt and review of the Notice of Intent to Participate, the Department will send a return
e-mail message to the contact person indicated on the form. This message will note the date the
Notice was received by the Department. That date will establish the timeline for determining the
eligibility of an otherwise eligible loan to be included in the Loan Purchase Programs.
Of course, entities that have already submitted Notices of Intent to Participate need not resubmit. For questions concerning the submission and receipt of the email please call (202) 3774401.
EXECUTING THE MASTER LOAN PARTICIPATION AGREEMENT

The four documents discussed below, along with the three attachments required as part of the
Officer’s Certificate (Exhibit E), must be submitted in hard copy with original “pen and ink”
signatures where required. The documents must be submitted together in one packet, along with
the Cover Letter described below to the address provided at the end of this document.
Upon receipt and review of the information submitted in the packet, the Department will send an
email message to the contact e-mail address provided in the Cover Letter, indicating the date the
packet was received by the Department. The message will also provide information regarding
the actions the Sponsor and Custodian must take while the Department reviews the submission.
Among those actions is the submission by the Sponsor of its initial “12-Month Rolling Forecast”,
as provided in section 8(a)(1) of the Master Participation Agreement. While the format and
specific submission instructions for the forecast will be provided in a subsequent
communication, we note this requirement here so that a Sponsor can begin preparing for its
completion.
Note that neither submission of a Notice of Intent to Participate or submission of the
documents described below constitute execution of the Master Participation Agreement.
Formal notification of execution from the Department will be provided upon review of
submitted documents.
Cover Letter
To ensure that the documents submitted are properly tracked, the Sponsor should include in its
submission a Cover Letter on the Sponsor’s letterhead that includes the following information:

Master Participation Agreement
Initial Document Submission Instructions
Page 3
The name, Lender ID (LID) and address of the lender/holder that wishes to participate as
a Sponsor (see the preamble to the Master Participation Agreement for a definition of
“Sponsor”). A Sponsor can be a beneficial holder participating in the FFEL Program
under an Eligible Lender Trustee agreement.
The name, Lender ID (LID) and address of the Eligible Lender Trustee for a beneficial
holder, if appropriate.
The name, Lender ID (LID) and address of the proposed Custodian. The LID should be
the Custodian’s regular eligible lender LID. Upon approval, the Department will assign
a special LID to this entity in its role as a Custodian for this Sponsor. See the note below
under “Adoption Agreement” for information about eligible Custodians.
The Sponsor’s contact person with name, address, phone number, e-mail address, and
fax number.
The name and address of the official of the Sponsor to whom we will mail the signed and
executed Adoption Agreement upon the Department’s approval.
Adoption Agreement (Exhibit A of the Master Loan Participation Agreement)
A lender/holder that wishes to participate in the Loan Participation Purchase Program must
review the Master Participation Agreement, agree with its terms, and begin the execution process
by completing and submitting to the Department an “Adoption Agreement” (see Exhibit A to the
MPA). One original copy of the Adoption Agreement must be completed, dated, signed, and
submitted to the Department in the same packet as the other documents discussed in this paper.
The Adoption Agreement must include an original “pen and ink” signature of an authorized
official of each of the following:
The lender/holder, who, upon execution of the Agreement, will be the Sponsor
offering to sell participation interests in Eligible Loans to the Department;
The Eligible Lender Trustee if the Sponsor participates in the FFEL Program as a
beneficial holder under an Eligible Lender Trustee (ELT) agreement;
The entity that is being proposed to be the Custodian under the Agreement and who,
if approved, will, among other things, issue and sell Participation Interests on behalf
of the Sponsor. If the entity being proposed as the Custodian has not yet been
approved by the Department the Sponsor should ensure that that entity submits its
Custodian request submission packet to the Department as quickly as possible.
Specific information on the Custodian submission requirements will be provided in a
separate communication.

Master Participation Agreement
Initial Document Submission Instructions
Page 4
Upon approval of the submission packet, the Department will return a signed copy of the
Adoption Agreement with a signature of an authorized Department official as a PDF attachment
to the contact person indicated in the Cover Letter. This attachment will indicate that the Master
Participation Agreement has been executed between the Department, the Sponsor (and the
Eligible Lender Trustee, if applicable) and the Custodian as of the date indicated by the
Department official.
Officer’s Certificate (Exhibit E of the Master Participation Agreement)
The Officer’s Certificate provides specific legal assurances. The signature blocks include a place
not only for the Officer, but also for the Secretary of the Sponsoring organization. Of course,
each of the blank spaces provided on the Officer’s Certificate must be completed.
As noted on the Officer’s Certificate, the following attachments must be included in the
submission packet:
Attachment I – a true and correct copy of either the Sponsor’s Certificate of Incorporation
and its by-laws or its Certificate of limited partnership and its limited partnership
agreement;
Attachment II – a true and correct copy of the resolutions duly adopted by the Board of
Directors of the Sponsor, with respect to the authorization and approval of the sale of
Participation Interests; and
Attachment III – a Certificate of Good Standing of the Sponsor under the laws of the
State.
Opinion of Counsel to the Sponsor (Exhibit F of the Master Participation Agreement)
The Opinion of Counsel must be completed and signed by the Sponsor’s counsel. It affirms that
the officer’s representations and warranties, as stated in the Sponsor’s Officer’s Certificate, are
not, to counsel’s knowledge, contraindicated.
SUBMISSION INSTRUCTIONS
Please note that for government security reasons, there is normally a delay in the delivery of mail
sent via the U.S. Postal Service to the Department. Therefore, if at all possible, the packet of
documents discussed above should be sent by courier or express mail to:
United States Department of Education
830 First Street, N.E.
Room 111G3
Washington, DC 20002
Attention: FFEL Agreement Process Team

Master Participation Agreement
Initial Document Submission Instructions
Page 5
If you use the U.S. Postal Service, the packet should be addressed to:
United States Department of Education
400 Maryland Avenue, SW
UCP, Room 111G3
Washington, DC 20202-5402
Attention: FFEL Agreement Process Team
As noted above, upon receipt and review of the information submitted in the packet, the
Department will send an e-mail message to the Sponsor’s contact e-mail address, as provided on
the Cover Letter, indicating the date the packet was received by the Department. The message
will also provide information regarding the actions the Sponsor and Custodian must take while
the Department reviews the submission.
Questions regarding the submission and receipt of the document submission packet should be
submitted by e-mail to [email protected] or by phone to (202) 377-4401.