The US Department of Education sent a letter on October 24, 2007 to 55 colleges with at least $10 million in FFELP loan volume with at least 80 percent of their volume with a single lender. 48 of the 55 had more than 95 percent of their volume with a single lender. This was a follow-up to an earlier request for information to 921 colleges with at least 80 percent of loan volume with a single lender. The list of 55 colleges is not comprehensive, as there are about 100 colleges that satisfy the same criteria (some with 100% of loan volume through a single lender) that aren't on the list. Also, some of the colleges on the list have less than $10 million in FFELP loan volume. Some of the colleges have multiple campuses, and it is unclear why one campus was chosen over the others. The Department also sent a letter (see below) to 23 of the lenders that originate loans at these colleges. Of the lenders that serve the 55 colleges, only two are missing from the list of 23 lenders: SC Student Loan Corporation (5 colleges) and Sallie Mae (19 colleges). The letter, the list of 55 colleges and a list of 23 lenders that also received information requests appear below. Some of the colleges have multiple campuses. ;;; ******************************** ;;; Letter ************************* ;;; ******************************** October 24, 2007 Dear [Lender Representative]: As part of our compliance efforts related to borrower choice and lender inducements in the Federal Family Education Loan (FFEL) Program, and in accordance with our authority under the Higher Education Act (HEA) and the U.S. Department of Education.s regulations, we are requesting that your company provide us with the information listed below. This request relates to any agreement, written or otherwise (including emails), that you, or any of your affiliates, have or had with schools that participate in the FFEL Program or with any individual at a school or any affiliate of a school. An affiliate of a school includes, among other entities, alumni, athletic, cultural, and professional organizations or associations. Under the HEA, a student who wishes to borrow under the FFEL Program and who attends (or plans on attending) a school that participates in the FFEL Program must be allowed to choose their FFEL lender. A school may not refuse to certify a FFEL loan based upon the borrower.s choice of lender or guaranty agency. A school may not steer or coerce a borrower, directly or indirectly, to choose a particular lender. A FFEL Program lender may not have any agreement, or engage in activities, with a school that prevents or impedes a borrower from exercising the right to choose a FFEL lender. Also, under the HEA, an eligible lender or guaranty agency may not offer, directly or indirectly, points, premiums, payments, or other inducements to secure applicants for loans made under the FFEL Program. The information to be provided must include any activity from July 1, 2005 to the present. You must provide the requested information for any relationship your company has or had with any school. However, since your company provided 80 percent or more of the FFEL Program loans made to students and parents for attendance at the schools included on the listing attached to this letter, you must affirmatively respond if you do not and did not have agreements with or transactions between any of the schools listed. Please provide the following 1. Lender School Agreements: The name of the school, individual, or school affiliate with which you, or one of your affiliates, has or had an agreement, whether in writing or not. If in writing you must submit a copy of the agreement. If the agreement is not formalized, provide copies of meeting notes, correspondence, emails, etc. that relate to the agreement. In all instances include the date the agreement was entered into, the time period covered by the agreement, and the terms of the agreement including any benefits or services offered or provided by either party under the agreement. Finally, provide contact names, phone numbers, and email addresses for your school and for the lender or guaranty agency associated with the agreement. 2. Remuneration: A listing of any school affiliated individuals who were provided by your company (or by any of its subsidiary organizations or organizations with which it has a contractual relationship) stocks, warrants or other financial interest in your company or any other entity. 3. Financial Transactions: A listing of any financial transactions between your company (or any of its affiliates) and a school if the transaction was not related to normal business processes. Normal business processes include student loan certifications, loan and other financial aid disbursements, transactions related to payroll, checking and other deposit accounts, and deposits to or withdrawals from existing loan accounts. The listing must include the date and amount of the transaction and a notation of the purpose of the transaction. 4. Copies of your (and your subsidiary organizations or organizations with which you have a contractual relationship) written policies and procedures, including the dates they were established, for ensuring that you are in compliance with all requirements of the law and regulations related to the FFEL Program. Detailed information must be provided for policies and procedures related to the prohibited inducement requirements of the law and regulations. 5. Decision Making: A description of how decisions are made by your company regarding incentives related to student loans that may be provided to borrowers and institutions. The requested information must be submitted to the address below no later than November 30, 2007: U.S. Department of Education Federal Student Aid Program Compliance Union Center Plaza 830 First Street, NE, Room 81G1 Washington, DC 20002 Attn: Jackie Bannister Upon receipt and review of the information provided, we may request additional information or schedule a program review to determine if there has been a violation of the statutory and regulatory requirements related to borrower choice or prohibited inducements. Should you have any questions concerning this request, please call Ann Marie Fusco. Thank you for your cooperation in this matter. Sincerely, Victoria Edwards Chief Compliance Officer Program Compliance Lender List Access Group Bank of America Bank of NY ELT College Solutions Bank One Citibank, Student Loan Corp. Citizens Bank College Foundation Inc Connecticut Student Loan Foundation JP Morgan Chase Bank New Hampshire Higher Ed Loan Corp. Northstar Guarantee Suntrust Bank Union Bank ELT University of Nebraska University of San Francisco VT Education Loan Finance Program Western Univ. of Health Science BNY ELT College Board Carnegie Insurance Company ED America Kentucky Higher Ed Student Loan Corp. Pittsburgh National Corp (PNC) RISLA/Rhode Island Student Loan Authority Wachovia Education Finance Inc. School List University of North Carolina at Pembroke Delaware State University William Paterson University of New Jersey Faulkner University Mass. College of Pharmacy & Health Sciences Shaw University University of Vermont and State Agricultural College Champlain College American Career College Suffolk University Castleton State College University of Findlay (The) Rowan University Georgia College & State University New York Chiropractic College Colorado Technical University Western Kentucky University Bowling Vermont Law School Georgia Institute of Technology Life Chiropractic College New York Medical College University of Nebraska Richard Stockton College of New Jersey (The) Everest Institute Charleston Southern University Marymount University University of North Carolina - Chapel Hill Western Connecticut State University Liberty University University of Rochester Johnson & Wales University University of Virginia Villa Julie College Universal Technical Institute Universal Technical Institute Fayetteville State University Francis Marion University Trident Technical College Meredith College La Salle University Vatterott College Southern New Hampshire University University of North Carolina - Charlotte Western University of Health Sciences College of New Jersey Medical University of South Carolina Springfield College Norwich University Western Governors University Seton Hall University University of Scranton University of San Francisco Greenville Technical College Bryman School (The) High-Tech Institute