Publication Date: June 23, 2008
Bulletin ID: DLB-08-14
Summary: Revised Master Promissory Note for Direct PLUS Loans
Dear Direct Loan Colleague:
This bulletin announces the availability of a revised Federal Direct
PLUS Loan Application and Master Promissory Note (Direct PLUS Loan MPN)
and related forms, and provides guidance on the implementation of these
documents. Information about a new MPN for Direct Subsidized Loans and
Direct Unsubsidized Loans will be addressed in a separate Direct Loan
Bulletin.
Revised Direct PLUS Loan MPN
The Office of Management and Budget (OMB) has approved a revised Direct
PLUS Loan MPN under OMB Control Number 1845-0068, with an expiration date
of 08/31/2010. The revised Direct PLUS Loan MPN reflects changes made
to the terms and conditions of Direct PLUS Loans by the College Cost Reduction
and Access Act (the CCRAA), Pub. L. 110-84, and final
regulations that were published on November 1, 2007.
For reference, we have attached the revised Direct PLUS Loan MPN to this
bulletin. Note that the revised Direct PLUS Loan MPN has the same 08/31/2010
expiration date as the previous Direct PLUS Loan MPN that is currently
in use. The attached document includes a revision date of 3/2008 at the
bottom of the form to clearly distinguish it from the previous version.
A school should discard the previous version once it begins using the
revised version.
Related Documents
Endorser Addendum - OMB has also approved a revised Endorser
Addendum for use with the revised Direct PLUS Loan MPN. The revised Endorser
Addendum has the same OMB Control Number and expiration date as the revised
Direct PLUS Loan MPN. The revised Endorser Addendum, like the revised
Direct PLUS Loan MPN, reflects all of the changes made by the CCRAA and
the November
1, 2007 final regulations.
Note: The Ensuring Continued Access to Student Loans Act
of 2008 (ECASLA), Pub. L. 110-227, made additional changes to the terms
and conditions of Direct PLUS Loans that are not included in the attached
revised Direct PLUS Loan MPN. Information about how we will inform Direct
PLUS Loan borrowers of these additional changes will be provided in a
future Direct Loan Bulletin.
Timeline for Transition to the Revised Direct PLUS Loan MPN
We are in the process of printing the revised Direct PLUS Loan MPN and
making the necessary changes to Federal Student Aid systems to allow for
implementation of the new form. Additional information about system implementation
and related outage information will be provided in a forthcoming Electronic
Announcement posted on the Information
for Financial Aid Professionals (IFAP) Web site.
The revised Direct PLUS Loan MPN will be implemented as follows:
Paper Direct PLUS Loan MPN
-
Before June 28, 2008 - We will accept only the current
version of the Direct PLUS Loan MPN (no revision date).
-
June 28, 2008 to December 31, 2008 - We will accept
either the current Direct PLUS Loan MPN (no revision date) or the
revised Direct PLUS Loan MPN (revision date of 3/2008).
-
On or after January 1, 2009 - We will accept only the
revised Direct PLUS Loan MPN (revision date of 3/2008). If the current
Direct PLUS Loan MPN (no revision date) is submitted on or after January
1, 2009, it will be rejected.
More detailed information on Federal Student Aid's implementation of
the revised Direct PLUS Loan MPN (paper version) and appropriate school
actions is provided in an attachment to this bulletin titled "Implementation
Guidance for the Revised Direct PLUS Loan MPN (Paper Version)."
Note: The attached implementation guidance applies only
to the paper version of the revised Direct PLUS Loan MPN. As in the past,
schools are not required to provide a paper copy of the Direct PLUS Loan
MPN to borrowers who complete the MPN electronically. Although we encourage
the use of the electronic MPN option, we remind schools that they may
not require student or parent borrowers to complete MPNs electronically.
Electronic Direct PLUS Loan MPN
Schools do not have to take any action if their student and parent borrowers
use the Direct Loan Electronic MPN Web site.
Contact Information
If you have questions about the information contained in this bulletin,
please contact the COD School Relations Center at 800/848-0978 or by e-mail
at CODSupport@acs-inc.com.
Thank you for your ongoing partnership in the Direct Loan Program.
Sincerely,
William Leith
Acting General Manager, Application, Operations and Delivery Services
Attachments/Enclosures:
Implementation
Guidance for the Revised Direct PLUS Loan MPN (Paper Version) in PDF Format,
33KB, 1 page
Revised
Direct PLUS Loan MPN With Data Labels in PDF Format, 273KB, 10 pages
Revised
Direct PLUS Loan MPN Without Data Labels in PDF Format, 271KB, 10 pages
Revised
Direct PLUS Loan Borrower's Rights and Responsibilities Statement (Stand-alone
Version) in PDF Format, 136KB, 6 pages
Posted 06/24/08 to www.NASFAA.org. Please submit Web Site questions or comments to Web@NASFAA.org
