Notes to SEFA
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, 2025. 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%.
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 $83,097,080 at December 31, 2025.
The Entity holds a servicing agreement for loan servicing duties with Navient Solutions, LLC who subcontracts the servicing duties to MOHELA. Under the terms of the servicing agreement, the servicer shall reimburse the Entity for any loss of principal and interest resulting from deficiencies in the loan servicing performed by the servicer.