MEMORANDUM

To:         Financial Aid Directors

From:    Chuck Sanders President and CEO

Date:     October 16, 2008

Re:        Availability of Federal Loans

With all the uncertainty in the financial markets today, we fully understand that students, parents, and higher education administrators around the country are very concerned about loan options for college. Therefore, I am writing to update you regarding the availability of FFELP loans for your students and parents.

As you are aware, we are deeply committed to ensuring access to higher education, and we have been working diligently over the past few months to secure the necessary funding for federal loans for the current year and the 2009-10 academic year. We have experienced a significant increase in loan volume as a result of the $2,000 annual unsubsidized Stafford Loan limit increase approved by Congress in May which led us to secure additional financing for the current year. We are pleased to report that we have successfully obtained additional financing for the current year, and we are in the final stages of implementing the required mechanisms necessary to fund all Federal Stafford, PLUS, and Grad PLUS loans for the 2009-10 academic year.

We are able to achieve this important objective due to our existing financing and the ability to utilize the U.S. Department of Education's financing vehicle created by the Ensuring Continued Access to Student Loans Act, which was recently extended by Congress and guarantees us access to funds through September 2010. Please be assured that under the terms and conditions of this financing, we will continue to originate and service all of our federal loans, and will provide the excellent service and benefits that you have hopefully learned to expect from us.

In summary, we are committed to working with the financial aid community, Congress and the new Administration to strengthen the long-term health of the Federal Family Education Loan Program. On behalf of SC Student Loan, I want to personally thank you for your continued support of FFELP and especially our organization. Should you have any questions or would like to discuss these matters, please do not hesitate to contact any of our dedicated loan counselors, Wayne Landrith or me at (800) 488-9875.