Publication Date: April 24, 2009
DCL ID: FP-09-04
Subject: Approval of FFEL Stafford and FFEL PLUS MPNs, and revised Promissory Note Addenda and Plain Language Disclosures for FFEL Stafford and PLUS Loans
Summary: This letter provides revised Master Promissory Notes (MPN), MPN Addenda, Plain Language Disclosures and related documents for Federal Family Education Loan (FFEL) Program Stafford and PLUS loans, and provides guidance on implementing the revised documents.
The Office of Management and Budget (OMB) has approved revised versions of the following FFEL Program promissory notes and related documents:
In addition, the Department of Education (the Department) has revised the following promissory note-related documents:
The MPNs, MPN addenda, and PLDs have been updated to reflect statutory changes to the terms and conditions of the Stafford and PLUS programs made by the Higher Education Reconciliation Act of 2005, the College Cost Reduction and Access Act of 2007, the Ensuring Continued Access to Student Loans Act of 2008, and the Higher Education Opportunity Act of 2008, as well as changes made by final regulations issued on November 1, 2007 and October 23, 2008.
Microsoft Word and PDF versions of all of the documents listed above are provided as attachments to this letter.
Implementation of the revised Stafford MPN, Stafford School Certification, PLUS MPN, PLUS Endorser Addendum, and PLUS School Certification.
Program participants may begin to use these forms immediately. Beginning October 1, 2009, only the new forms may be provided to borrowers. Previous versions of the Stafford MPN, PLUS MPN, and PLUS Endorser Addendum received on or after the date of publication of the new forms should continue to be accepted for processing.
Implementation of the revised Stafford MPN Addendum, Stafford PLD, PLUS MPN Addendum, and PLUS PLD.
Program participants must discontinue use of the current Stafford and PLUS addenda and PLDs (see Dear Colleague Letter FP-08-02) and begin using the revised addenda and PLDs as soon as possible, in accordance with the guidance provided below.
The attached revised Stafford and PLUS addenda must be used with the current versions (paper or electronic) of the Stafford MPN (OMB No. 1845-0006; exp. date 02/29/2008) and PLUS MPN (OMB No. 1845-0069; exp. date 03/31/2008) to inform borrowers of the statutory and regulatory changes to the terms and conditions of their loans until the revised Stafford and PLUS MPNs included with this letter have been implemented. Each addendum includes a notation in the lower right hand corner that identifies the form number and expiration date of the MPN that the addendum should accompany.
Once the revised MPNs included with this letter have been implemented, the addenda are no longer required. The revised MPNs include all of the provisions that are covered in the revised addenda.
Borrowers completing paper Stafford or PLUS MPNs (current versions)
For borrowers completing paper MPNs, a paper copy of the appropriate addendum must be provided to the borrower along with the MPN or promissory note.
Borrowers completing electronic Stafford or PLUS MPNs (current versions)
For borrowers completing an electronic MPN, the full text of the appropriate addendum must be incorporated into the electronic promissory note process and must be presented to the borrower before the borrower signs the MPN. In addition, when a borrower prints or downloads the MPN from a program participant's website, the full text of the addendum must print along with all other loan-related documents.
Borrowers receiving subsequent Stafford or PLUS loans under an existing MPN or borrowers who completed the current version of an MPN before the revised addenda were available
Borrowers receiving a subsequent Stafford or PLUS loan under a previously signed MPN, or who completed an initial MPN before the revised PLDs and addenda were available and in use by program participants, must be informed of changes to loan terms and conditions that apply to their loans. Program participants may use existing processes to notify borrowers of these changes (such as annual letters to borrowers, notices of changes in the variable interest rate, websites, publications, etc.). However, all borrowers who receive a subsequent Stafford or PLUS loan under an existing MPN after the date the program participant begins using the revised PLDs must receive the appropriate revised PLD.
Current borrowers who are not completing new Stafford or PLUS MPNs or receiving subsequent loans under an existing MPN
Current borrowers who are not completing new promissory notes or receiving subsequent loans must be notified of changes to loan terms and conditions that may apply to their loans. Program participants may use existing processes to notify borrowers of these changes, such as annual letters to borrowers, notices of changes in the variable interest rate, websites, publications, etc.
No changes to, deletions from, or additions to the language of the attached documents are permitted.
The MPNs and addenda must be printed using black ink on white paper. The typeface, point size, and general presentation of the documents may not be changed from the documents that OMB and the Department have approved.
The text of the revised Stafford and PLUS PLDs may be enhanced by printing in any format or colors and may be combined with other information or graphics.
Obtaining Copies for Reproduction
The revised MPNs, addenda, and PLDs are available in Word and PDF format as attachments to this letter. In addition, the forms are available on the National Council of Higher Education Loan Programs (NCHELP) web site at www.nchelp.org.
Guaranty agencies are responsible for ensuring that the MPNs, addenda, and PLDs they use are identical to the documents approved by OMB and the Department. No changes may be made to the documents except as expressly authorized above.
Jeff Baker, Director
Policy Liaison and Implementation
Federal Student Aid
Publication Date: 4/24/2009