Federal Updates

New information on Loan Purchase Programs

ED has released two new Electronic Announcements (E-ANN) about the Ensuring Continued Access to Student Loans Act (ECASLA):

• E-ANN 56, issued on April 13, describes the Notice of Intent to Participate submission process for the 2009-10 Loan Purchase Programs. Since the 2009-10 Loan Purchase Programs are new programs — and not extensions of earlier ECASLA Loan Purchase programs — each FFELP originating lender or subsequent holder that wishes to participate (or have a subsequent holder of loans it originated participate) in the 2009-10 Loan Purchase Programs must execute a 2009 Notice of Intent to Participate, regardless of any earlier submissions.
  
  Loans first disbursed on or after May 1, 2009 for the 2009-10 award year are eligible for the 2009-10 Loan Purchase Programs. However, a lender may not sell eligible loans or participation interests to ED on which the first disbursement was made prior to the date that ED receives the 2009 Notice of Intent to Participate. Therefore, only a 2009 Notice of Intent to Participate received on or before May 1, 2009, will qualify eligible loans on which the first disbursement was made on May 1, 2009. A 2009 Notice of Intent to Participate received after May 1, 2009, limits eligible loans to only those where the first disbursement was made on or after the date ED receives the 2009 Notice of Intent to Participate.
  
  Instructions on the submission process for the 2009 Notice of Intent to Participate are attached to the E-ANN. ED will provide submission information for the 2009-10 MPA and MLSA in a subsequent announcement.
  
  
• E-ANN 57, issued on April 16, 2009, announces a 1.24 percent participant yield rate for the quarter ending June 30, 2009. This rate should be used when calculating Participant (i.e., ED's) Yield on Participation Principal balances that have been funded by ED during the quarter of April 1, 2009 through June 30, 2009.

For more information
The full announcements, and all previous ECASLA guidance issued by ED, are available at www.federalstudentaid.ed.gov/ffelp.

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Current special allowance rates: quarter ending March 31, 2009

The following rates apply for the quarter ending March 31, 2009:

• The average of the bond equivalent rates of the 91-day Treasury bills auctioned during the quarter ending March 31, 2009, is 0.23 percent.
• The average of the bond equivalent rates of the quotes of the three-month commercial paper (financial) rates in effect for each of the days in the quarter ending March 31, 2009, is 0.74 percent.

The FFELP special allowance rates for the most recent quarter are available on TG Online at www.tgslc.org/policy/index.cfm.

Questions
For questions about special allowance rates, contact TG customer assistance at (800) 845-6267 or send an e-mail message to cust.assist@tgslc.org.

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