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You are here: School Services » DOE Participation and PUT Programs  


National Education continues to provide your students the very best loans and superior customer service you have come to know and expect from us.  During these tough economic times most lenders, including National Education, are taking part in the Department of Education's Participation Program.  This Program will ensure all FFELP loans are made and delivered as seamlessly as possible during this difficult time.  While some details are not yet clear, we want to share the following information on the process flow so you may be fully informed.


  • National Education is taking part in the DOE's Participation Program.
  • National Education's LID is 834378.  All FFELP (Stafford, PLUS and GradPLUS) originations will be originated under this LID. 
  • Guarantors and servicers partnering with lenders to support the Participation Program will report all activity under the lenders' origination LID (National Education's LID 834378) until the loan is FULLY disbursed.
  • ELM also reports loan activity under the originating LID.

Loan Changes under the Participation Program

Not Fully disbursed:

  • If a school requires a change to any loan and the loan is only partially disbursed, the school may submit changes as it does today (ie: return funds, increase/decrease loan amount, change allocation from sub/unsub, cancel a loan, decrease the second disbursement, return part of the disbursed funds etc.)  However, we have requested guidance from the Department regarding any change that may not be permitted to a loan partially disbursed.

Fully Disbursed Loan:

  • We have asked the Department for guidance if there are any changes that will not be permitted on fully disbursed Participated Loans.  If there are specific limitations, we will update this section to keep you advised.

Reporting under the Participation Program:

  • Once a loan has been fully disbursed, the new National Education/Custody LID is 834443.  A "Notice of Transfer" is sent to each guarantor at this point.  The DOE-approved custodian National Education uses is Wells Fargo.
  • At this point the Loan will be reported on ELM under the National Education custodian LID 834443.
  • National Education's Custodian LID will appear on NSLDS as "834443 NTL ED Financing II Wells Fargo"
  • Since the Department has only financed these loans and has not "purchased" them from the lender (National Education), a transfer of ownership is not made and letters are NOT sent to the borrowers at this time.

Department "PUT" Program

  • In the event National Education sells the loan to the Department, at that point borrowers will receive a Notification of Loan Transfer.
  • According to DOE guidelines, qualified Loans may be sold AFTER full disbursement.  If a lender elects to sell/PUT to the DOE, it may do so after notifying the Department 45 days in advance to schedule the PUT.
  • Nine (9) days BEFORE the transfer to the Department, Loans sold enter into a "lockdown" period where NO payments, refunds, deferments, etc. can be processed.
  • Once Loans are SOLD to the DOE:
    • Lender (National Education) has legally transferred ownership of the Loans to the Department
    • The role of the Guaranty Agency is terminated, as the loans are guaranteed by the Department
    • The Department reserves the right to move servicing to their selected servicer or keep it where the loans were originated.  National Education has advised the Department of our interest in retaining servicing for borrower continuity.
    • All reporting by the originating lender (National Education) will end for these particular loans.
    • Student borrowers will be notified of the transfer, most likely by the Department.
    • Customer Service issues that may arise after the loans are sold will be coordinated by the DOE or their designated servicer
    • The Lender (National Education) retains serial rights to the original MPN (LID 834378) and can make future loans under this MPN.
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