Federal Register: January 15, 2009
Volume 74, Number 10
[pdf version of document]
DEPARTMENT OF EDUCATION
DEPARTMENT OF THE TREASURY
OFFICE OF MANAGEMENT AND BUDGET
Federal Family Education Loan Program (FFELP)
AGENCY: Department of Education, Department of the Treasury, Office of Management and Budget.
ACTION: Notice of terms and conditions of additional purchase of loans under the Ensuring Continued Access to Student Loans Act of 2008.
SUMMARY: Under the authority of section 459A of the Higher Education Act of 1965, as amended (``HEA''), as enacted by the Ensuring Continued Access to Student Loans Act of 2008 (Pub. L. 110-227) and amended by Public Law 110-315 and Public Law 110-350, the Department of Education (``Department'') may purchase, or enter into forward commitments to purchase, Federal Family Education Loan Program (``FFELP'') loans made under sections 428 (subsidized Stafford loans), 428B (PLUS loans), or 428H (unsubsidized Stafford loans) of the HEA, on such terms as the Secretary of Education (``Secretary''), the Secretary of the Treasury, and the Director of the Office of Management and Budget (collectively, ``Secretaries and Director'') jointly determine are ``in the best interest of the United States'' and ``shall not result in any net cost to the Federal Government (including the cost of servicing the loans purchased).''
This notice establishes the terms and conditions that will govern certain loan purchases made under section 459A of the HEA, as extended by Public Law 110-350, including (a) purchases from an asset-backed commercial paper vehicle referred to as an ``ABCP Conduit'' or ``Conduit'' (``ABCP Conduit Program'') and (b) replication for the 2009-2010 academic year of the Loan Participation Purchase Program (``2009-2010 Participation Program'') and Loan Purchase Commitment Program (``2009-2010 Purchase Program'') (collectively, ``Programs'').
This notice also outlines the Department's methodology and factors that have been considered in evaluating the price at which the Department will purchase these additional FFELP loans; and describes how the use of those factors and methodology will ensure that the additional loan purchases do not result in any net cost to the Federal Government. The Secretaries and Director concur in the publication of this notice and have jointly determined that, based on the Department's analysis, the purchase of additional loans as described in this notice is in the best interest of the United States and shall not result in any net cost to the Federal Government (including the cost of servicing the loans purchased).
DATES: Effective Date: The terms and conditions governing the purchase of loans under the 2009-2010 Participation Program and Purchase Program, and the ABCP Conduit Program are effective January 16, 2009.
Publication Date: 1/15/2009