Bulletin ID
DLB - 99 - 15
| PublicationDate: 3/1/99 BulletinID: DLB - 99 - 15 March 1999 DLB 99-15 Subject: Guidance on Processing Master Promissory Notes in EDExpress Dear Colleague: The Master Promissory Note (MPN) process streamlines financial aid processing for all Direct Loan schools in the 1999/2000 academic year. Only one valid, signed promissory note (MPN) is required for both subsidized and unsubsidized Stafford loans containing the same school code, SSN, and loan sequence number (sister loans). EDExpress Version 5.1 Due to changes required in reauthorization and the time schedule for software release, the 5.1 version has no means of linking sister loans. The impact on your school is that the software will require you to print both promissory notes and mark them both signed before disbursement data can be entered into the software. Version 5.2, described in the next section, will remedy this. Until that version is released in early May, you may want to use one of the strategies listed below for printing and manifesting promissory notes using version 5.1: 1. Print only the subsidized promissory note for the borrower to sign. This will set the status flag to P for printed. Check the Borrower Signed field when you receive it back from the borrower. This is the note you will manifest and send to the Loan Origination Center. When you import the LOC acknowledgment of the subsidized loan origination record, Express will update the sister unsubsidized loan to status A. 2. Print only the subsidized promissory notes to the printer for the borrower to sign. This will set the status flag to P for printed. You must check the Borrower Signed field when you receive it back from the borrower. This is the note you will manifest and send to the Loan Origination Center. Print the unsubsidized promissory note to a file (rather than the printer). This will change the status flag to P. You must then check the Borrower Signed field when you receive the MPN back from the borrower. When you print the manifest you have two options. 1) You can let the software select and include on the manifest all records that are marked as signed. The list will include the subsidized and unsubsidized promissory notes for borrowers who have both types of loans. Then mark a line through and initial the listed promissory notes that were printed to a file. 2) You can use selection criteria or a query to choose specific records to be included in the manifest, avoiding the task of marking out the notes that are not physically included. 3. Print all of the subsidized and unsubsidized promissory notes. This will set the status flag to P. You could discard one of the promissory notes for the borrower because only one valid MPN is required. The borrower only needs to sign one promissory note. When it is returned, remember that you must check the Borrower Signed field for both of the loan records. The signed promissory note should be included on the manifest. Again, you can include all promissory note records on the manifest and mark through those not physically included, or chose specific promissory notes to be included in the manifest. 4. Print both subsidized and unsubsidized promissory notes. Have the borrower sign both notes. Mark each promissory note record as signed, manifest and send both promissory notes to the Loan Origination Center. The Loan Origination Center will assign one of the promissory notes as the MPN and link all appropriate records. EDExpress Version 5.2 Version 5.2 of the EDExpress Software for 1999/2000 will be released in May and will include the Pell Processing Origination Module. An update to the Direct Loan module that addresses the printing of MPNs will also be included. An option on the prompt screen will allow you to suppress the printing of the unsubsidized sister loan and will update the promissory note status of both loans to P. The manifest will list only the subsidized sister loan for each borrower. This change alleviates the manual processes outlined above for printing and manifesting promissory notes. Subsidized and unsubsidized loan processing must be done simultaneously for this to work properly. An originated unsubsidized loan must exist at the point in time of printing the sister subsidized loan Example: A subsidized loan is created and processed for a student, but later in the term, an unsubsidized loan is processed for the same student. The loans would have the same school code, SSN, and sequence number, so an MPN for the unsubsidized sister loan is not required. If the subsidized loan has already been accepted, the sister unsubsidized record will be updated to status P when the unsubsidized loan origination record acknowledgment is imported from the LOC. The LOC will link the unsubsidized sister loan to the MPN previously printed and submitted with the subsidized sister loan. This information will be relayed to the school on the Loan Origination Record and Promissory Note acknowledgements. Future enhancements to the MPN process will be included in the 2000/2001 EDExpress software. If you have specific questions about processing MPNs with the EDExpress software please contact your Client Account Manager or attend the Direct Loan EDExpress Software Training (Day 2 and 3) in the Regional Training Facilities. Thank you for your continued support of the Direct Loan program. Sincerely, Margaret E. White Acting Chair Direct Loan Task Force |