The Department of Education’s Straight-A Funding added another Funding Note Issuer (FNI), increasing its authorized amount by $719 million of commercial paper.
Straight-A Funding has a program size of $60 billion and may purchase assets from ten FNIs with a total authorized issuance of $39.9 billion.
The program funds student loans originated and guaranteed through the Federal Family Education Loan Program (FFELP) by issuing Student Loan Short Term Notes (SLSTNs).
The SLSTNs are fully supported through a liquidity facility provided by the Federal Financing Bank, a government corporation under the general supervision and direction of the Secretary of Treasury.
The program may issue Series-1 and Series-2 notes which rank equal in payment priority and can have expected maturities up to 90 days. Reflecting the terms of the liquidity facility, the legal final maturity date for the Series-1 and Series-2 notes will be three and seven business days after the date of their expected maturity, respectively.
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