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(FP-07-02) FFEL Stafford Note Addendum and Plain Language Disclosure

Publication Date: March 2007

DCL ID: FP-07-02

Subject: Revised Promissory Note Addendum and Plain Language Disclosure for Federal Stafford Loans made under the Federal Family Education Loan (FFEL) Program

SUMMARY: This letter announces a revised promissory note addendum and Plain Language Disclosure that explain changes made to Federal Stafford Loan annual loan limits by the Higher Education Reconciliation Act of 2005 (the HERA)

Posted on 03-01-2007

Dear Colleague:

Dear Colleague Letter FP-06-05 announced promissory note addenda and revised Plain Language Disclosures that explained to borrowers the changes to the terms and conditions of Federal Stafford Loans, Federal PLUS Loans, and Federal Consolidation Loans that were made by the HERA. (See Dear Colleague Letters GEN-06-02, FP-06-01 for detailed information on all of the changes made to the Title IV loan programs by the HERA.)

One of the changes made by the HERA, an increase in some of the annual loan limits for Federal Stafford Loans, was not included in the Federal Stafford Loan Master Promissory Note Addendum (Stafford MPN Addendum) and Federal Stafford Loan Plain Language Disclosure (Stafford PLD) that accompanied Dear Colleague Letter FP-06-05, because that change was not effective until July 1, 2007. Since the effective date is now just a few months away, we have revised the Stafford MPN Addendum and PLD to include the loan limit changes that take effect for loans first disbursed on or after July 1, 2007. In addition, we have revised Item 9 (Interest) in the PLD by adding a sentence to clarify that some loans with a variable interest rate have a rate that is lower during in-school, grace, and deferment periods, and higher during repayment and forbearance periods.

There are no changes to the Addendum to the Federal PLUS Loan Application and Master Promissory Note and Endorser Addendum, the Federal PLUS Loan Plain Language Disclosure, or the Addendum to the Federal Consolidation Loan Application and Promissory Note that were included with Dear Colleague Letter FP-06-05.

The following documents are attached to this letter:

  • Revised Addendum to the Federal Stafford Loan MPN
  • Revised Federal Stafford Loan Plain Language Disclosure

Until a revised Stafford MPN is developed and approved for use, the attached revised Addendum must be used with the current Stafford MPN to inform borrowers of the changes made to the terms of their loans by the HERA. The revised Stafford PLD includes information on the statutory changes for borrowers who are receiving second or subsequent Federal Stafford Loans under a previously signed Stafford MPN, or who may have signed an MPN for the first time before the Addendum was available. The Secretary is using comparable forms in the William D. Ford Federal Direct Loan Program.

Implementation of the revised Federal Stafford Loan MPN Addendum and Plain Language Disclosures

Program participants must discontinue use of the original Addendum and PLD and begin using the attached revised Addendum and PLD as soon as possible. Participants should continue to refer to Dear Colleague Letter FP-06-05 for guidance on the use of the Addendum and PLD.

Printing Instructions

No changes to, deletions from, or additions to the language of the revised Stafford MPN Addendum and PLD are permitted.

The revised Stafford MPN Addendum must be printed using black ink on white paper. The typeface, point size, and general presentation of the Addendum may not be changed from the documents that the Department has approved.

The text of the revised Stafford PLD 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 Stafford MPN Addendum and PLDs are available in PDF format on the Department's IFAP website ( and as attachments to this letter. In addition, the documents are available on the National Council of Higher Education Loan Programs (NCHELP) website at

Guaranty agencies and lenders are responsible for ensuring that the revised Stafford MPN Addendum and PLD they use are identical to the documents approved by the Department. No changes may be made to the documents except as expressly authorized above.


Jeff Baker
Policy Liaison and Implementation
Federal Student Aid


Last Modified: 02/28/2007