The Department of Education has revealed more details about its plan to promote liquidity for FFELP lenders, shedding light on two programs - loan purchase and short-term liquidity facilities - included in the recently enacted "Ensuring Continued Access to Student Loans Act of 2008."

Market players said that both programs serve as a stopgap measure by the U.S. government to ensure that there's enough capital to fund FFELP loans for the 2008 to 2009 school year. But even though these initiatives are definitely a boost to FFELP lenders, the question that is being asked is what happens when these programs end?

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