Summary: This letter provides information about an Addendum to the National Direct Student Loan (NDSL) and Federal Perkins Loan Program Promissory Notes to reflect the 1998 Amendments to the Higher Education Act
SUMMARY: This letter provides information about an Addendum to the National Direct
Student Loan (NDSL) and Federal Perkins Loan Program Promissory Notes
to reflect the 1998 Amendments to the Higher Education Act.
FEDERAL STUDENT FINANCIAL AID HANDBOOK REFERENCE: This letter supplements the information contained in Part 2 of the Campus-Based Program Section of the 1999-2000 Student Financial Aid Handbook
Enclosed please find an Addendum to the NDSL and Federal Perkins Loan Program promissory notes that reflects the changes made to the Federal Perkins Loan Program by the Higher Education Amendments of 1998 (the 1998 Amendments). The Addendum is intended for immediate use in conjunction with the existing NDSL and Federal Perkins Loan promissory notes contained in Dear Colleague letters CB-93-9 and CB-96-8 and must be used without any changes by all institutions.
Final regulations incorporating the changes to the Federal Perkins Loan Program resulting from the 1998 Amendments were published on October 28, 1999. As noted in the preamble to the final regulations, the promissory notes contained in CB-93-9 and CB-96-8 are legally valid documents. The absence of the Addendum or a new promissory note did not negate a school's responsibility to comply with the program changes resulting from the 1998 Amendments, nor did the lack of an Addendum or new note affect a borrower's entitlement to these benefits.
Until the Department of Education (the Department) develops and distributes new promissory notes that include these provisions, schools must provide a copy of the attached addendum with a copy of the promissory note for all loans made on or after August 1, 2000. For Perkins Loans or NDSLs made on or after October 7, 1998 until August 1, 2000, schools should provide a copy of the Addendum to all borrowers in order to inform borrowers of the new borrower benefits. The Department is not prescribing to schools the timing or method for providing the Addendum to this group of borrowers. Schools may wish to consider mailing the Addendum, distributing it during exit interviews, inserting it in billing notices for those borrowers already entering repayment, or other methods.
If you have any questions regarding the Addendum to the NDSL and Federal Perkins Loan Program promissory notes, please contact Vanessa Freeman at (202)708-8242 or Vanessa_Freeman@ed.gov Brian Smith at (202)708-8242 or Brian_Smith@ed.gov.
Program Development Division
Office of Student Financial Assistance