This report addresses concerns raised by the Committee on Health, Education, Labor, and Pensions of the U.S. Senate on : (1) the number and cost of trustee arrangements providing student loans and their shared characteristics; (2) the benefits and protections afforded the federal government through use of trustee arrangements; and (3) the effect of trustee arrangements on market participation and the availability of student loans. A variety of key participants in the student loan market were interviewed and/or surveyed, including federal officials, eligible lenders, ineligible lenders, guaranty agencies, and loan servicing organizations. Findings indicated that given current law and the federal regulations that govern the Federal Family Education Loan Program (FFELP), trustee arrangements between eligible and ineligible lenders serve an important role in enabling ineligible lenders to participate in FFELP, and in protecting the federal government's investment in the program. (EV)