Student Loans Sold to the Department of Education
In May of 2008, Congress passed the Ensuring Continued Access to Student Loans Act (ECASLA) in response to many concerns that credit market conditions could disrupt federal student loan availability. The law allows the U.S. Department of Education to purchase federal student loans (Stafford, PLUS, and Graduate PLUS) from lenders to ensure on-going liquidity and availability of funds for student loans.
This purchase commitment program gives lenders the option to sell fully disbursed federal loans for the 2008-09 and 2009-10 academic years. The sale of student loans to the Department of Education does not affect the terms and conditions governing the loans. The terms and conditions of the loans still apply as stated in the Master Promissory Note that was signed when the loan was originally taken out.
If your loan(s) are sold to the Department of Education you should be notified by your lender. Additionally, borrowers whose loan(s) are sold should receive a welcome letter from the D.O. E. If you receive a letter from your lender stating that your loan has been sold or you receive a welcome packet from the Department of education and have questions about your loan please contact the Department of Education Student Loan Servicing Center at 1-800-508-1378.