PHEAA Seeks Bondholder Consent to Amend 1998 Student Loan Revenue Bonds

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Amendment would allow flexibility in refinancing Bonds and selling student loans

Harrisburg, PA (November 6, 2009)—The Pennsylvania Higher Education Assistance Agency (PHEAA) announced today that it will be seeking approval for the Thirty-Eighth Supplemental Trust Indenture (the "Proposed Amendment") from holders of all Outstanding Student Loan Revenue Bonds issued under the Trust Indenture dated August 1, 1997, as amended and supplemented. The Proposed Amendment would provide, among other things, the basis for future opportunities for Bondholders to exchange their Bonds on a discounted basis for student loans currently pledged as collateral under the Indenture or to tender their Bonds for payment at a discount from collections of loan repayments. A consent solicitation packet containing the Proposed Amendment, together with relevant information materials and instructions for consenting, is expected to be sent to Bondholders on or about Monday, November 9, 2009.