Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. The amount for Federal Family
Education Loan (FFEL) Program represents the amount of the loan outstanding at December 31, 2024, for
which the federal government imposes continuing compliance requirements.
De Minimis Rate Used: N
Rate Explanation: The Entity has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform
Guidance.
The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award
activity of Mississippi Higher Education Assistance Corporation and subsidiary Woodward Hines Education
Foundation (Entity) under programs of the federal government for the year ended December 31, 2024. The
information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected
portion of the operations of the Entity, it is not intended to and does not present the financial position,
changes in net assets, or cash flows of the Entity.
Federal Financial Assistance
For loans disbursed prior to April 1, 2006, the Entity earns interest at the greater of the loan rate or a floating
rate based on the special allowance payment (SAP) formula, with any interest earned at the SAP rate that
exceeds the interest earned at the loan rate being paid directly by Department of Education (DOE) on a
quarterly basis. For loans disbursed on or after April 1, 2006, the Entity earns interest at the SAP rate, as
any interest earned at the loan rate that exceeds the interest earned at the SAP rate is required to be
refunded to DOE on a quarterly basis. For loans first disbursed prior to January 1, 2000, the SAP rate is
related to the average of 91-day treasury bill rates during each quarter. For loans first disbursed on or after
January 1, 2000, the SAP rate is related to the average of one-month LIBOR rates during each quarter until
June 30, 2023; after June 30, 2023, the SAP rate is related to the 30-day average Secured Overnight
Financing Rate (SOFR) plus a tenor spread of 0.11448%.
Title: Loans Outstanding
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. The amount for Federal Family
Education Loan (FFEL) Program represents the amount of the loan outstanding at December 31, 2024, for
which the federal government imposes continuing compliance requirements.
De Minimis Rate Used: N
Rate Explanation: The Entity has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform
Guidance.
The Schedule includes FFEL Program guaranteed loan balances at the beginning of the year plus loans
purchased during the year. The balance of guaranteed loans under the FFEL Program was $91,680,371 at
December 31, 2024.
Title: Student Loan Notes Servicing
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. The amount for Federal Family
Education Loan (FFEL) Program represents the amount of the loan outstanding at December 31, 2024, for
which the federal government imposes continuing compliance requirements.
De Minimis Rate Used: N
Rate Explanation: The Entity has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform
Guidance.
The Entity holds subservicing agreements for FFEL Programs (Lenders) loan servicing duties with Navient
Solutions, LLC and MOHELA. Under the terms of these subservicing agreements, the subservicer shall
reimburse the Entity for any loss of principal and interest resulting from deficiencies in the loan servicing
performed by the subservicer.