A lender or lender servicer designated for exceptional performance is eligible to receive 100% reimbursement on all claims submitted for insurance during their period of designation. A lender must submit a written request for the EP designation that includes:

• Applicants name, address, and a contact person
• ED Identification number
• Names and addresses of applicable guarantors
• Copy of an annual financial audit performed in accordance with the Exceptional
• Performer Lender Audit Guide or
• An annual audit required under 682.305(c)1 if the audit period ends no more than
• 90 days prior to the date the lender submits the request for designation
  
• A compliance audit of its loan portfolio, conducted by a qualified independent organization that yields a compliance performance rating of 97% or higher in accordance with the Exceptional Performer Lender Audit Guide.  The audit period may end no more than 90 days prior to the date the lender submits its request for designation. 

Lender servicer applications must also include a signed statement by the owner or chief executive officer certifying that the applicant meets the definition of a servicer. Additionally, copies of all materials submitted to the Secretary must also be submitted to each appropriate guaranty agency.

Guaranty agencies and guaranty agency servicers designated for exceptional performance shall receive the applicable reinsurance rate under section 428(c)(1) of the Higher Education Act on all claims submitted for payments during their period of designation.
Applications from guaranty agencies and their servicers will be accepted upon completion of the Exceptional Performer Guarantor Audit Guide.

EP Lender/Servicer Audit Guide

Q&A Document

Regulations