Maintained for Historical Purposes

This resource is being maintained for historical purposes only and is not currently applicable.

(Direct Loans) Subject: Revised Master Promissory Note for Direct Subsidized Loans and Direct Unsubsidized Loans

Posted Date:August 07, 2009

Author: William Leith, Service Director, Program Management, Federal Student Aid

Subject: Revised Master Promissory Note for Direct Subsidized Loans and Direct Unsubsidized Loans

We are pleased to announce the availability of a revised Federal Direct Subsidized Loan and Direct Unsubsidized Loan Master Promissory Note (Direct Subsidized/Unsubsidized Loan MPN). An attachment to this announcement provides guidance on the implementation of this document. Information about a new MPN for Direct PLUS Loans is provided in a separate August 7, 2009 Electronic Announcement on the Information for Financial Aid Professionals (IFAP) Web site.

Revised Direct Subsidized/Unsubsidized Loan MPN

The Office of Management and Budget (OMB) has approved a revised Direct Subsidized/Unsubsidized Loan MPN under OMB Control Number 1845-0007. The revised Direct Subsidized/Unsubsidized Loan MPN reflects changes made to the terms and conditions of Direct Subsidized/Unsubsidized Loans by the Higher Education Opportunity Act (the HEOA), Pub. L. 110-315, and final regulations that were published on November 1, 2007 and October 23, 2008.

For reference, we have attached the revised Direct Subsidized/Unsubsidized Loan MPN to this announcement. Note that the revised Direct Subsidized/Unsubsidized Loan MPN has the same 05/31/2011 expiration date as the previous Direct Subsidized/Unsubsidized Loan MPN that is currently in use. The revised Direct Subsidized/Unsubsidized Loan MPN includes a revision date of 03/2009 in the footer of the document to clearly distinguish it from the previous version, which does not include a revision date. A school should discard the previous version once it begins using the revised version.

We have printed the revised Direct Subsidized/Unsubsidized Loan MPN, and we are making the necessary changes to Federal Student Aid systems to allow for implementation of the revised form. Detailed implementation guidance for the revised Direct Subsidized/Unsubsidized Loan MPN and the related documents described below is provided in the attachment titled "Implementation Guidance for the Revised Direct Subsidized/Unsubsidized Loan MPN."

Related Documents

Plain Language Disclosure (PLD) - The PLD for Direct Subsidized/Unsubsidized Loans has also been revised to reflect all of the statutory and regulatory changes that are included in the revised Direct Subsidized/Unsubsidized Loan MPN.

Addendum to Current Direct Subsidized Loan/Direct Unsubsidized Loan Master Promissory Note (Direct Subsidized/Unsubsidized Loan MPN Addendum) - This MPN Addendum explains changes to loan terms and conditions made by the HEOA and the final regulations cited above that are not included in the current Direct Subsidized/Unsubsidized Loan MPN. It is to be used only with the current paper version of the Direct Subsidized/Unsubsidized Loan MPN (OMB No. 1845-0007, Expiration Date 05/31/2011, with no revision date in the lower right corner) until a school begins using the revised paper Direct Subsidized/Unsubsidized Loan MPN (03/2009 revision date).

Contact Information

If you have questions about the information in this announcement, contact the COD School Relations Center at 800/848-0978. You may also e-mail CODSupport@acs-inc.com.

Last Modified: 08/06/2009