February 5, 2009

Terms and Conditions of Additional Purchases of Loans Under ECASLA

Federal Register Released Detailing Liquidity Programs

The Departments of Education (ED) and Treasury have released a Federal Register notice that includes details of the loan participation and purchase programs for 2009-2010 and a new liquidity program involving asset-backed conduits.

The notice announces terms and conditions for the extended Ensuring Continued Access to Student Loans Act (ECASLA) participation and purchase programs for loans made for the 2009-2010 academic year. The basic terms of these programs have not changed from those in place for the 2008-2009 academic year. Additionally, the notice describes terms and conditions under which ED will purchase loans from private asset-backed commercial paper conduits as part of its role as backstop for the issuance of commercial paper by the conduit.

Loans that are eligible to be sold to a conduit include Stafford and PLUS loans made from as early as October 1, 2003 through loans with a final disbursement date of September 30, 2009. The notice includes details about fees, required commitments and pricing for loans that are sold or "put" to ED.  A conduit can exist for up to five years. While loans remain in a conduit, servicing is retained by the lender and the guarantee is retained by the original guarantor. 

OGSLP will continue to monitor the progress of these programs and will update customers as we receive additional information. If you have questions about these important liquidity programs, contact Rick Edington, Director for School/Lender Services, Default Prevention & Outreach at 405.234.4333 or redington@ogslp.org.