Summary: Revised Loan Purchase Agreements

Publication Date: July 25, 2008

Author: Lawrence A. Warder, Acting Chief Operating Officer, Federal Student Aid

Summary: Revised Loan Purchase Agreements

Posted on 07-25-2008

Included as attachments to this memo are revised copies of the Master Participation Agreement (MPA) and the Master Loan Sales Agreement (MLSA). These agreements must be executed by FFEL Program lenders who wish to participate in one or both of the Loan Purchase Programs. Earlier versions of the agreements were posted on July 10, 2008.

Many of the revisions made to the agreements are either corrections of typographical errors or corrections of incorrect references within the documents. Other revisions, while more substantive, do not significantly impact the basic structure and requirements of the Loan Purchase Programs. The majority of these revisions resolve perceived inconsistencies within the documents and clarify expressed Department intent. There were, however, more substantive changes that relate to the role of the custodian and the rights of those providing interim financing to student lenders. We encourage you to review the document in full to completely ascertain all the changes.

We want to thank those members of the FFEL community who suggested some of these changes and we look forward to working with the entire community to implement these important programs.