Bulletin ID
DLB - 00 - 5
| PublicationDate: 2/1/2000 BulletinID: DLB - 00 - 5 February 2000 DLB 00-05 Subject: Information on the Multi-Year Feature of the Master Promissory Note (MPN) Dear Partner: The multi-year feature of the Master Promissory Note will be available to four-year and graduate-level schools in academic year 2000-2001. Eligible schools will be able to originate and disburse 2000-2001 subsidized and unsubsidized loans based on accepted 1999-2000 Master Promissory Notes from any Direct Loan school. Eligible schools will also be able to originate additional 1999-2000 subsidized and unsubsidized loans on the 1999-2000 MPN after February 28, 2000, when the 2000-2001 award year functionality is in production at the Loan Origination Center (LOC). Many of you have had questions, and many of you have asked us for a notice advising you of your school's eligibility to use the multi-year function. You can determine if your school is eligible to use the multi-year feature by referring to the Eligibility and Certification Approval Report (ECAR) that was sent to you along with your Program Participation Agreement (PPA) the last time your school was certified or re-certified. Page A-2 of the ECAR includes an item called “HIGHEST EDUCATIONAL PROGRAM OFFERED”. Your school is eligible to use the multi-year feature of the MPN if this item shows one of the following: Master's Degree or Doctor's Degree First Professional Degree Professional Certification Bachelors Degree If your school qualifies, your students may use the MPN to receive additional loans, assuming other requirements of the MPN process are met. Please refer to GEN Letter 98-25 (Detailed Information Regarding the Introduction of a Master Promissory Note for Federal Stafford Loans in the Federal Family Education Loan ((FFEL)) Program), GEN Letter 99-08 (Introduction of the Master Promissory Note in the Direct Loan Program for Academic Year 1999-2000), and Direct Loan Bulletin 99-14 (Improvements to Federal Direct Stafford/Ford Loan Master Promissory Note for 1999-2000). The eligibility to use the multi-year feature of the MPN applies to all of your students, even those who are not enrolled in four-year or graduate programs. Each borrower who will be receiving a loan under the multi-year feature of the Master Promissory Note must be notified of the proposed dollar amount and type (subsidized or unsubsidized) of each loan. The notification can be part of and/or can supplement the existing required notices and disclosures. If your institution uses a passive confirmation process, the borrower is required to take action only if s/he wants to reject or make adjustments to the types and/or amounts of the loans. Thank you for your ongoing partnership in the Direct Loan Program. Sincerely, Margaret E. White Acting Lead, Title IV Delivery Schools Channel |