Bulletin ID
DLB - 98 - 40
| PublicationDate: 10/1/98 BulletinID: DLB - 98 - 40 October 1998 DLB 98-40 SUBJECT: Change in Instructions to Complete the "Addendum to Federal Direct PLUS Loan Promissory Note ENDORSER" Dear Colleague: In December 1997 (see Direct Loan Bulletin 97-46), the Loan Origination Center (LOC) made blank PLUS loan endorser forms available for school use. In those instances where a school was aware that a PLUS loan applicant was likely to have an adverse credit history, the school could choose to give endorser forms to parents to submit with their original Federal Direct PLUS Application and Promissory note. Because the form states that the Loan Origination Center will complete Sections B and C of the endorser form, many school-distributed forms are being returned to the LOC with those sections blank. The manual search for the loan ID and/or the borrower by the LOC is time consuming and risk prone. Therefore, we are requesting that schools now complete those two sections and Box 20, which is the PLUS loan identification number, of any blank endorser forms they give to parent borrowers. Specifically, Section B: Parent Borrower Information, and Section C: Student (for whom PLUS Loan is sought) Information, and Box 20: Identification Number(s), should be completed by the school, not by the Loan Origination Center. Any form received without this information will be returned to the endorser asking him/her to have the school complete the necessary information. The LOC will continue to complete Sections B, C, and Box 20 on endorser forms requested from the LOC for specific loans. Please make note of this change in procedure. Our intent is to expedite processing. Thank you for your continued support. Sincerely, Joe L. McCormick Chair Direct Loan Task Force |