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(GEN-00-03) Use of the multi-year feature of the Master Promissory Note (MPN) by four-year and graduate-level schools.

DCLPublicationDate: 3/1/2000
DCLID: GEN-00-3
AwardYear:
Summary: Use of the multi-year feature of the Master Promissory Note (MPN) by four-year and graduate-level schools.


Note: The subject line has been modified from when it was originally posted on 3/13/2000.

March 13, 2000

GEN-00-03

Subject: Use of the multi-year feature of the Master Promissory Note (MPN) by four-year and graduate-level schools.

Reference: Direct Loan and FFELP Reference, SFA Handbook

Dear Partner:

As you know, under the multi-year feature of the Master Promissory Note (MPN) many students will be able to obtain additional loans from the FFEL or Direct Loan programs without having to sign a new promissory note for each period of enrollment. The multi-year use of the MPN is currently available only at schools that meet the two conditions specified below. We will publish another letter shortly that will describe how other postsecondary schools may apply to use the multi-year feature.

Your students are eligible to use the multi-year feature of the MPN if:

1. One of the following categories is listed under “Highest Educational Program Offered” on your school's Eligibility and Certification Approval Report (ECAR, page A-2):

Master's Degree or Doctor's Degree

First Professional Degree

Professional Certification

Bachelor's Degree

Note: The ECAR is sent to your school along with the Program Participation Agreement (PPA) after certification or re-certification (see attached example).

2. Your school is located in the United States. (Note that the statutory definition of "State" includes the Commonwealth of Puerto Rico, the District of Columbia, Guam, American Samoa, the United States Virgin Islands, and the Freely Associated States.)

If your school meets both of these conditions, your students may use the MPN to receive additional loans, assuming that the other requirements of the MPN process have been met. These requirements are included in previous letters on the MPN (
GEN-98-25 and GEN-99-8) and in the recently published final regulations on the topic of the Master Promissory Note (November 1, 1999, amending 34 CFR 682.401 and 685.402). If your school is eligible, the multi-year feature applies to all of your students, even those who are not enrolled in four-year or graduate programs.

If you have any questions, please contact our SFA Customer Support Service. Staff are available Monday through Friday between the hours of 9:00 AM and 5:00 PM (Eastern Time) at 1-800-433-7327. After hours calls will be accepted by an automated voice response system. Callers leaving their name and phone number will receive a return call the next business day. You may FAX an inquiry to the Customer Support Service at (202) 260-4199, or E-mail one to CSB@ed.gov.

Thank you for your continued support of the Student Financial Assistance programs.

Sincerely,



G. Kay Jacks, General Manager
Schools Channel


Attachment A
Attachment B

Last Modified: 10/15/2000