Bulletin ID
DLB - 99 - 19
| PublicationDate: 4/1/99 BulletinID: DLB - 99 - 19 April 1999 DLB 99-19 Subject: Ordering and Using the Direct Loan Master Promissory Notes and Other Forms for 1999-2000 Dear Colleague: This bulletin provides you with information about ordering and using the Direct Loan Master Promissory Notes (MPNs) for Direct Subsidized and Direct Unsubsidized loans, as well as other forms for the 1999-2000 academic year. The are two approved MPNs for the 1999-2000 academic year. The originalMPN gives students a space in Item 8 to enter a requested loan amount for the first academic period. The revisedMPN uses the same space, Item 8, to inform borrowers of their right to cancel or request a lower loan amount for each academic period. The revisedversion also reminds students where they can find additional information about reducing or canceling loans received. The Loan Origination Center (LOC) will accept both the original master promissory note and the revised master promissory note. You may continue to use the original MPN. How Can I Order 1999-2000 Master Promissory Notes? The original MPN is now available in Montgomery. A limited supply of the revised MPN is now available; a full supply of the revised MPN will be available at the end of April. The notes are free and will be shipped to you at no cost. Each type of MPN must be ordered separately. If you order the original MPN (OMB # 1840-0732), you must also order the original version of the Instructions and Notices Instructions for Completing Promissory Note. If you order the revised MPN (OMB # 1840-0743), you must also order the revised version of the Instructions and Notices Instructions for Completing Promissory Note. An order form for the different materials follows at the end of this bulletin. For the first time you can request promissory notes with data labels and without data labels. Data labels refer to all the section boxes and labels that tell a person what data or information is shown in that box. An example of a data label is: Name (Last, First, M.I.) and Address (Street, City, State, Zip Code). The notes without data labels have large white spaces where your printer will add all the lines, data labels, and the actual data when it prints. The notes with data labels are what the Department of Education printed in the past; the school printer will fill in only the borrower data when it prints. What Materials Are Now Available? Original version of the MPN (OMB #1840-0732) single sheet with data labels without data labels Instructions for the original version of the MPN Revised version of the MPN (OMB #1840-0743) single sheet with data labels without data labels Revised version of the MPN (OMB #1840-0743) pin-fed with data labels without data labels Instructions for the revised version of the MPN Direct Stafford/Ford Loan Borrowers Rights and Responsibilities Direct PLUS Loan Promissory Note single sheet with data labels without data labels Direct PLUS Loan Promissory Note pin-fed with data labels without data labels Direct PLUS Loan Promissory Note Instructions Direct PLUS Loan Promissory Note Endorser Addendum Direct PLUS Loan Promissory Note Endorser Addendum Instructions Direct PLUS Loan Borrowers Rights and Responsibilities When Must I Use the 1999-2000 MPNs? When Must I Use the 1998-99 Promissory Notes? Schools should begin using the new notes for all program year 1999-2000 loans. Because the new promissory notes have different printing alignment requirements from the 1998-99 notes, it is necessary to use the 1999-2000 MPN with the software for that same year. You cannot use the 1998-99 software to process the new MPN. You may not use the 1998-99 promissory notes to make 1999-2000 loans unless the loan period overlaps the June 30/July 1 academic year change. Similarly, schools must use the 1998-99 promissory notes to make loans for the 1998-99 academic year. If your school is still making 1998-99 loans, you must continue to submit these loans using the 1998-99 software, even though 1999-2000 software is available. Software for both the 1998-99 and 1999-2000 academic years will be operational at the LOC. When Do the Forms Expire? 1998-99 Promissory Note Expiration Date -- OMB has approved an extension of the expiration date for the 1998-99 Direct Subsidized, Direct Unsubsidized, and PLUS promissory notes, as well as the Endorser Addendum. The date has been extended to December 31, 1999. You may continue to use your current supply of 1998-99 promissory notes and endorser addenda through December 31, 1999. 1999-2000 Original Master Promissory Note Expiration Date -- The expiration date for the original MPN (OMB #1840-0732) is December 31, 2001. 1999-2000 Revised Master Promissory Note Expiration Date -- The September 30, 1999, expiration date of the revised MPN (OMB #1840-0743) will be extended. We are currently preparing the necessary paperwork to submit to OMB to ensure that there will be no interruption in the use of the revised form. What if I Develop My Own Software for Printing Promissory Notes If you intend to develop your own promissory notes they must be tested with the LOC. If you tested your promissory notes last year, you have received test packets. If you did not test last year, you may request a testing packet from your Customer Service Representative at the LOC. If you previously developed and received approval for the original MPN but want to use the revised MPN, your revised MPN must go through the same review and testing process. Unlike previous years, you do not need to submit the promissory note to the Department for approval, only to the LOC. If you have questions about this bulletin, please contact your regional Client Account Manager. Thank you for your ongoing support of the Direct Loan Program. Sincerely, Margaret E. White Acting Chair Direct Loan Task Force Enclosure |