MEMORANDUM

To:         Financial Aid Directors

From:    Chuck Sanders President and CEO

Date:     November 19 , 2008

Re:        Suspension of Private Loans

On behalf of South Carolina Student Loan, I want to thank you for your loyal support of our loan programs and services. Today, I am writing to update you regarding our private loan programs. As a result of the ongoing disruption in the credit markets, we are forced to suspend all of our Palmetto Assistance Loan (PAL) programs effective immediately. This action will not impact any previously approved private loan commitments for the current academic year and certainly has no impact upon our Federal loan programs. We are required by our bond insurer to disburse all PAL commitments by January 31, 2009 so our staff will be communicating with your institution to coordinate this process.

As you may have read, U.S. Treasury Secretary Henry Paulson announced plans last week to create a new financing facility to support securitization of consumer loans, such as student loans, utilizing the authority provided by the $700 billion Troubled Asset Relief Program (TARP). We are hopeful that this program will be implemented in order to allow us to resume our private loan programs as soon as practicable.

While it is unfortunate that we have to take this measure, SC Student Loan remains deeply committed to providing college access for students and families in South Carolina who rely on education loans for higher education. Thank you again for your continuous support of our organization and your understanding during these unprecedented times. If you have any questions or would like to discuss these matters, please do not hesitate to contact me or Wayne Landrith at (800) 488-9875.