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<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Below
is information on the latest ECASLA announcement #86. The formatting of
some of the data below is a little weird, but the attachment should be clear.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>LOAN
PURCHASE PROGRAMS ELECTRONIC ANNOUNCEMENT #86</span></font><font
face="Times New Roman"><span style='font-family:"Times New Roman"'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Date:
May 20, 2010<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>To:
FFEL Program Community<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>From:
James W. Runcie, Deputy Chief Operating Officer<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Federal
Student Aid<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Subject:
2009-2010 Loan Purchase Programs Closing Dates<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>This
Electronic Announcement provides important information on the ending dates for<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>the
2009-2010 Loan Purchase Programs authorized by the Ensuring Continued Access to<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Student
Loans Act (ECASLA). The ECASLA loan purchase programs are the Loan<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Purchase
Commitment Program (the 2009-2010 PUT Program) and the Loan Purchase<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Participation
Program (the 2009-2010 Participation Program). Since many loans that had<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>been
included in the 2009-2010 Participation Program are likely to be put to the<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Department
under the 2009-2010 PUT Program, we first provide information related to<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>the
2009-2010 PUT Program that is important for both direct puts and for puts that
come<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>from
the participation program. We then provide information specific to the
2009-2010<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Participation
Program.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Loans
Fully Disbursed by September 30, 2010<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>The
definition of an eligible loan for purposes of the 2009-2010 PUT Program, as<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>provided
in Section 3 of both the Master Loan Sale Agreement for the 2009-2010 PUT<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Program
and the Master Participation Agreement for the 2009-2010 Participation<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Program,
includes the requirement that to participate in either program the loan must be<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>fully
disbursed no later than September 30, 2010. Similar to the 2008-2009 Loan<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Purchase
Commitment Program, we will not extend the September 30, 2010 date by<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>which
the loans must be fully disbursed to be deemed eligible for loan purchase.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Sellers
should be certain that all loans they include on any 45-Day Notice to Sell have<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>either
been fully disbursed or are expected to be fully disbursed prior to the date
when the<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>loan
transfer conversion file will be finalized. Also, sellers must ensure that
there are no<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>outstanding
disbursements that have been made or that are scheduled to be made,<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>including
any processed under an alternative disbursement process.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Extension
of Final Purchase Date to October 15, 2010<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Similar
to the closeout of the 2008-2009 PUT Program, the final purchase date for the<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>2009-2010
PUT Program will be October 15, 2010. This will allow for the increased<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>activity
at the end of the program year especially as it relates to loans where the
final<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>disbursement
occurred during the last days of September. The October 15 date also<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>allows
time for the liquidation by a lender of participation interests under the
2009-2010<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Participation
Program. To repeat, the final purchase date for all 2009-2010 PUTs, both<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'>$B!F(B</span></font>straight<font
face="Times New Roman"><span style='font-family:"Times New Roman"'>$B!G(B</span></font>
puts as well as participation puts will be October 15, 2010.<o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Extension
of Final Date to Submit 45-Day Notice<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>To
support the loan purchase date extension to October 15, 2010, discussed above,
the<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>last
date we will accept a seller</span></font><font face="Times New Roman"><span
style='font-family:"Times New Roman"'>$B!G(B</span></font>s 45-Day Notice to Sell
will be August 31, 2010 (45<o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Days
prior to October 15). Therefore, any seller that has executed a 2009-2010 MLSA<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>may
submit one or more 45-day notices up to August 31, 2010 with a purchase date
being<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>45
days from the date of the 45-Day Notice to Sell.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>As
noted in Electronic Announcement #81, sellers should submit their 45 Day Notice
as a<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>PDF
attachment to an email sent to the following email address: <font color=blue><span
style='color:blue'>ed.servicer@ed.gov<o:p></o:p></span></font></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>with
the subject line </span></font><font face="Times New Roman"><span
style='font-family:"Times New Roman"'>$B!H(B</span></font>2009-2010 45 Day Notice<font
face="Times New Roman"><span style='font-family:"Times New Roman"'>$B!I(B</span></font>.
Upon receipt of the 45-Day Notice to<o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Sell
with the current servicer information, the Department will assign the loan sale
to one<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>of
the four new Department servicers. The seller will receive an email
acknowledgement<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>notification
from the Department servicer confirming receipt of the 45-Day Notice and<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>the
requested purchase date for the loan sale.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Table
of Dates<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Note
that the table on blackout and funding dates in Electronic Announcement #70<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>included
dates through the end of October, 2010. However, as discussed above, the final<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>purchase
date for the 2009-2010 PUT Program will be October 15, 2010 with submission<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>of
a 45-Day Notice to Sell of August 31, 2010. Therefore, the following is updated<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>information
for the remaining months of the 2009-2010 PUT Program.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Month
Blackout Dates<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>(funding
not available)<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>First
Date<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>for
Funding<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>/
<st1:City w:st="on"><st1:place w:st="on">Sale</st1:place></st1:City> in<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Month<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Last
Date for<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Funding
/ <st1:City w:st="on"><st1:place w:st="on">Sale</st1:place></st1:City><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>in
Month<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>45</span></font><font
face="Times New Roman"><span style='font-family:"Times New Roman"'>$B!>(B</span></font>Day
NOI<o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Due
Date for<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Last
Funding<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Date<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Federal<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Holidays<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>May<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>2010<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>May
3<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>May
28 May 4 May 27 April 12 May 31<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Jun<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>2010<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>June
1<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>June
29 </span></font><font face="Times New Roman"><span style='font-family:"Times New Roman"'>–</span></font>
30 June 2 June 28 May 14<o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Jul<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>2010<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>July
1<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>July
29 </span></font><font face="Times New Roman"><span style='font-family:"Times New Roman"'>–</span></font>
30 July 2 July 28 June 13 July 5<o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Aug<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>2010<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>August
2<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>August
30 -31 August 3 August 27 July 13<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Sep<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>2010<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>September
1<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>September
27 -30 September 2 September 24 August 10 September 6<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Oct<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>2010
October 1 - 5 October 6 October 15 August 31 October 11<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>2009-2010
Participation Program<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Deadlines
to Execute a Master Participation Agreement (MPA) and to Sell<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Participation
Interests<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>The
Department will not execute an Adoption Agreement to enter into a Participation<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Agreement
with any sponsor after July 1, 2010. The sponsor must generally exercise its<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>option
to sell participation interests (i.e., to submit funding requests) by August 1,
2010.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Sponsors
may sell participation interests after August 1, 2010 only if certain
conditions<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>are
met as defined in Section 1 of the MPA (i.e., the 1st disbursement on the loan
was<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>made
by July 1, 2010, this 1st disbursement was participated by August 1, 2010, the
final<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>disbursement
must occur no later than September 30, 2010, the sponsors notifies the<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Department
of an intent to sell [put] this loan, and this final disbursement is
participated<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>no
later than 30 days after the date of final disbursement, but no later than
September 30,<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>2010).
As a reminder, below are the remaining Participation Interest funding blackout<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>dates:<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'>•</span></font> May 28, 2010<o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'>•</span></font> June 29 <font
face="Times New Roman"><span style='font-family:"Times New Roman"'>–</span></font>
30, 2010<o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'>•</span></font> July 29 <font
face="Times New Roman"><span style='font-family:"Times New Roman"'>–</span></font>
30, 2010<o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'>•</span></font> August 30 <font
face="Times New Roman"><span style='font-family:"Times New Roman"'>–</span></font>
31, 2010<o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'>•</span></font> September 27 <font
face="Times New Roman"><span style='font-family:"Times New Roman"'>–</span></font>
30, 2010<o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'>•</span></font> October 1 <font
face="Times New Roman"><span style='font-family:"Times New Roman"'>–</span></font>
5, 2010<o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Deadline
for Existing Sponsors to Execute a Master Loan Sales Agreement (MLSA)<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>To
exercise the put option for participated loans, the sponsor (together with its
eligible<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>lender
trustee, if applicable) must have entered into an MLSA on or before July 1,
2010.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>For
sponsors who have entered into an MLSA by July 1, 2010, the Loan Participation<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>program
will terminate on or by September 30, 2010. For sponsors who have not<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>entered
into an MLSA by July 1, 2010 the Loan Participation Program will terminate on<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>July
1, 2010. Therefore, we encourage all sponsors who do not currently have an MLSA<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>in
place to execute one prior to July 1, 2010. To execute this agreement, it is
prudent to<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>submit
the MLSA package as soon as possible, but no later than seven business days in<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>advance
of the cut-off (i.e., June 22, 2010), in case the Department requires additional<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>information
or changes to submitted documents.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Liquidation
of Participations<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>As
provided in Section 15 of the 2009-2010 MPA, all 2009-2010 participations are
to be<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>terminated
no later than September 30, 2010. To effect a termination, the sponsor must<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>take
steps to liquidate the remaining balance of the Department</span></font><font
face="Times New Roman"><span style='font-family:"Times New Roman"'>$B!G(B</span></font>s
participation interests,<o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>either
by making the redemption payment for each participated loan to the custodian,
or<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>by
submitting, no later than August 31, 2010, a 45-Day Notice of Intent to Sell
the<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>participated
loan to the Department and by consummating that sale no later than October<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>15,
2010.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>IMPORTANT:
All PUTs from participation will be netted against outstanding principal<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>and
yield balances due to the Department by the custodian at the time of the sale.
Any<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>remaining
amounts will be remitted to the custodian.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Failure
to Liquidate<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>In
accordance with Section 15, paragraph (e) of the MPA, failure of a sponsor to
liquidate<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>the
Department</span></font><font face="Times New Roman"><span style='font-family:
"Times New Roman"'>$B!G(B</span></font>s participation interests in a timely manner
will result in the Department<o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>acquiring
ownership of any loans subject to that participation interest. Loans which the<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>sponsor
has neither redeemed from the participation nor sold to the Department will<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>become
the property of the Department without any further action by the Department<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>(including
any additional recompense), and the participation interests and the rights of
the<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Department
and the sponsor under the MPA will be automatically terminated.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Deadlines
to Notify the Department of Closeout Plans<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>No
later than August 14, 2010, sponsors must notify the Department of their plan
to put<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>their
participated loans to the Department and/or redeem their participation
interest, both<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>by
September 30, 2010. However, we encourage all sponsors to notify the Department
as<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>soon
as possible with respect to their plans by sending an email to the <font
color=blue><span style='color:blue'>fsa_lr@ed.gov<o:p></o:p></span></font></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>mailbox
indicating whether they will sell their loans and/or redeem their participation<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>interests,
when they will do so, and in what amounts.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>Timeline
for Closeout Audit<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>The
custodian must submit to the Department a final closeout audit of the custodian</span></font><font
face="Times New Roman"><span style='font-family:"Times New Roman"'>$B!G(B</span></font>s<font
face="Times New Roman"><span style='font-family:"Times New Roman"'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>activities
under the 2009-2010 Participation Program conducted by an independent</span></font><font
face="Times New Roman"><span style='font-family:"Times New Roman"'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>auditor
selected by the sponsor (which may be the same auditor that is performing
audits</span></font><font face="Times New Roman"><span style='font-family:"Times New Roman"'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>on
behalf of the sponsor or the servicer). In accordance with Section 8 (b) (2) of
the</span></font><font face="Times New Roman"><span style='font-family:"Times New Roman"'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'>MPA,
the custodian shall submit such audit prior to 90 days after the Termination
Date.</span></font><font face="Times New Roman"><span style='font-family:"Times New Roman"'><o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
</div>
<p class=MsoNormal><font size=3 face="MS PGothic"><span style='font-size:12.0pt'><a
href="mailto:blief@nchelp.org"></a></span></font><font face="Times New Roman"><span
style='font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> </span></font><o:p></o:p></p>
</div>
</div>
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