IN THE COURT OF CHANCERY FOR THE STATE OF DELAWARE
THE NATIONAL COLLEGIATE
STUDENT LOAN MASTER
TRUST, et al.,
Plaintiffs

C.A. No. 12111-VCS

v.
PENNSYLVANIA HIGHER
EDUCATION ASSISTANCE
AGENCY D/B/A AMERICAN
EDUCATIONAL SERVICES,
Defendant

CONIMONWEALTH OF PENNSYLVANIA
DAUPHIN COUNTY

)
) ss:
)

I, Kenneth M. Shutter, Esq. being duly sworn, do depose and say:
1.

I am the Vice President, Client Relations and Enterprise Quality

Assurance for Defendant Pennsylvania Higher Education Assistance Agency
("PHEAA").
2.

I make this affidavit in connection with Defendant's Response in

Opposition to Plaintiffs' Motion for a Preliminary Injunction, and each statement
contained herein is true and correct to the best of my knowledge and belief.

1

 Exception Requests

3.

Borrowers often request certain exceptions to their student loan

repayment such as co-borrower releases, the extension of forbearance periods,
issues involving armed service members who have loans and are entitled to relief
under the Servicemembers Civil Relief Act, and revised reporting to credit
agencies ("Exception Requests").
4.

With respect to the student loans held by Plaintiffs, since the fourth

quarter of 2015, PHEAA has sent each of the outstanding Exception Requests to
Wilmington Trust in its capacity as Owner Trustee.
5.

Currently, there are in excess of2,000 Exception Requests

outstanding.
6.

Because each Exception Request is different, the information PHEAA

provides to the Owner Trustee with the Exception Request is different.
7.

In each case in which PHEAA receives an Exception Request,

PHEAA provides sufficient information for the Owner Trustee to make a
determination about the Exception Request.
8.

Initially, PHEAA sent categorical information relating to each

Exception Request to the Owner Trustee.

2

 9.

Upon the Owner Trustee's request for a different format to present the

information, PHEAA began providing and continues to provide each Exception
Request as a written narrative in the form of a letter.
10.

Neither the Plaintiffs nor the Owner Trustee have requested additional

information relating to the outstanding Exception Requests.

PHEAA Had No Knowlede;e of the Actions of
the Indenture Trustee and Administrator Raised in Plaintiffs' Brief
11.

PHEAA is not working with the Administrator, GSS Data Services,

Inc., or the Indenture Trustee, U.S. Bank, to prevent the Plaintiffs from conducting
an audit or operations meeting.
12.

Prior to October 7, 2016, when Plaintiffs filed their brief in support of

their motion for a preliminary injWlction, PHEAA had no knowledge of the
communications from the Administrator and Indenture Trustee to the Owner
Trustee attached to Plaintiffs' brief as exhibits 35, 36, and 38.

'-id~ ~;Jk,i

DATED: October 27, 2016

Kenneth M. Shutter
Sworn and subscribed to before me this

~t dayof ~ 2016

~

NOTARIAL SEAL
JAMIE LYNNE IRWIN
Notary Publlc

CITY Of HARRISltJRG, DAUPHIN COUNTY
My Comml11lon- Expires Feb t 1, 2020

3

 Nam Public