Publication Date: May 28, 2003
Author: General Manager: FSA Financial Partner Channel
Summary: AMENDMENT TO THE AMERICANSTUDENT ASSISTANCE (ASA) VOLUNTARY FLEXIBLE AGREEMENT
Posted on 05-28-2003
AMENDMENTTO THE VOLUNTARY FLEXIBLE AGREEMENT
BETWEEN
THE UNITED STATES DEPARTMENT OF EDUCATION
AND
THE MASSACHUSETTS HIGHER EDUCATION ASSISTANCE CORP.
(d/b/a AMERICAN STUDENT ASSISTANCE)
Theabove referenced Agreement (hereafter the "VFA"), datedas of January 1,2001, is modified in accordance with the terms ofthis Amendment. To the extent that any terms and conditions ofthis Amendment conflict with any terms and conditions of the VFA,the terms of this Amendment shall control.
- Section 10 (a) is revised to remove the current paragraph and replace it as indicated below:
(a) Either partymay terminate this VFA by giving written notice of thetermination to the other party no less than 90 calendar daysbefore the date of termination.
2. Section 10 (b)is deleted.
(b)Prior to the expiration date established by Section 10(a), eitherparty
may terminate this VFA by giving written notice of thetermination to the
other party no less than 90 calendar days before the date oftermination.
3. Section 10 (c)is redesignated as Section 10 (b).
(b) If this VFA isterminated under this Section, ASA shall remain a
guaranty agency in the FFEL Program under the Existing Agreementsand
in accordance with the HEA and the Department's regulations as ofthe
time of termination. In the event this VFA is terminated byeither party
for any reason, the full amount of the Federal Fund Escrowestablished
under Section 8 of this VFA shall revert to ASA on the effectivedate of
the termination. However, prior to the return of the funds toASA, the
Department shall be entitled to withdraw the amount of any fundsowed
by ASA to the Department or the United States under the HEA.
4. ASA and theDepartment of Education agree that ASA must meet or exceed the
FY 2003 weighted performance targets identified in Section 5 (a),(b), (c), and
(d) for Collections, Claims, Reported Loan Guarantees, andReported Loans
Paid in Full each fiscal year for the duration of the VFA. If ASAdoes not meet
those standards, the Portfolio Wellness Fee will be reduced asprovided in Section 5.
5. Except for themodifications made above, all provisions of this VFA will
continue in full force.
IN WITNESS WHEREOf,this Amendment to the VFA has been executed by authorizedofficials of ASA and of the Department of Education.
____________________
Date
American StudentAssistance
________________________________
Authorized Official
________________________________
Title
____________________
Date
U.S. Department ofEducation
________________________________
Authorized Official
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Title