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(GEN-99-09) Approval of the Master Promissory Note in the Federal Family Education Loan (FFEL) Program for Academic Year 1999-2000.

DCLPublicationDate: 2/1/99
DCLID: GEN-99-9
AwardYear:
Summary: Approval of the Master Promissory Note in the Federal Family Education Loan (FFEL) Program for Academic Year 1999-2000.


February 1999

GEN-99-9


Summary: Approval of the Master Promissory Note in the Federal Family Education Loan (FFEL) Program for Academic Year 1999-2000.

Dear Colleague:

This letter discusses--

The Master Promissory Note and related instructions
Use of these forms and
An invitation for you to participate in the development of changes for the
2000-2001 academic year.

I am pleased to announce the approval of a Master Promissory Note (MPN) and related forms in the FFEL Program for use for the 1999-2000 academic year. Use of the MPN form will simplify the loan process by eliminating the need for many students to complete a promissory note every year they borrow.

In September 1998, we issued draft copies of the MPN and related forms. This letter provides FFEL Program participants with copies of the final forms approved by the Office of Management & Budget. The forms include changes required by the Higher Education Amendments of 1998.

In November of 1998, we issued implementation guidance for the MPN in Dear Colleague Letter GEN-98-25, 98-L-211. Detailed information on the use of the MPN was included in that letter. The MPN is a promissory note that some students will use to accept one loan. Other students, at schools approved by the Department, will use the MPN to accept several loans.

For the 1999-2000 academic year, students attending schools participating in the FFEL Program may use the MPN or the Common Stafford Application /Promissory Note form. The new MPN form must be used for all Federal Stafford Loans for the 2000-2001 academic year for loan periods beginning on or after July 1, 2000 and for any loan certified on or after July 1, 2000, regardless of the loan period.

The MPN and related forms may be distributed by FFEL lenders and guaranty agencies to schools or directly to FFEL borrowers for use for the 1999-2000 academic year. Attachment 4 provides the printing instructions for the MPN.

Attachment 3 provides information on the use of the Loan Certification form by schools that use a paper process to transmit school certification information. Attachment 5 provides information for lenders and guaranty agencies on options for securing print files and camera-ready files of the new form.

I want to thank the FFEL Program community and the school representatives and student groups that assisted us in the development of the MPN and related forms. We look forward to assisting you with the implementation of the Master Promissory Note and to working with you to make improvements in the MPN process and other aspects of student aid delivery for the 2000-2001 academic year.

Sincerely,



Greg Woods
Chief Operating Officer
Office of Student Financial Assistance


Attachment A
Attachment B
Attachment C
Attachment D
Attachment E

Last Modified: 02/18/1999