Bulletin ID
DLB - 00 - 11
| PublicationDate: 3/1/2000 BulletinID: DLB - 00 - 11 March 2000 DLB 00-11 Subject: Using the Multi-Year Functionality of the Master Promissory Note Dear Partner: This bulletin follows up on Direct Loan Bulletin 00-05, which provided preliminary information on the multi-year function of the master promissory note (MPN). 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 can also originate additional 1999-2000 subsidized and unsubsidized loans on the 1999-2000 MPN. The information in this bulletin offers you tips for processing along with attachments for system edits and manual review edits for MPNs, the order form for notes and disclosure statements, and a copy of the Plain Language Disclosure. HINTS FOR PROCESSING Students Attending 99-00 Summer Term For students who are attending a 99-00 summer term and have used four disbursements, you can create a new 99-00 loan and the LOC will link it to the existing note. Returning Students If a student was at your school and received a 99-00 Direct Loan, you do not need another note. When you send in your origination records, the LOC acknowledgement will confirm that there is a note and give you the master promissory note ID. Transfer Students If a student transfers to your school you will be able to check the ISIR record or NSLDS to determine if the student received a 99-00 Direct Loan. For academic year 2001-2002, the ISIR will include a field that indicates a valid MPN is on file at the LOC. For academic year 2000-2001, you should be able to determine if a valid Direct Loan MPN is on file from academic year 1999-2000 by reviewing the NSLDS loan data on the ISIR. There are 12 occurrences of loan data on the ISIR, beginning with field #339. Please see the EDE Technical Reference, available on IFAP, for the exact record layout. If any of the occurrences contain the following values, you may assume there is a valid MPN on file for that student borrower at the LOC: NSLDS Loan(xx) Program Code = D1 or D2 (DL sub or unsub) AND NSLDS Loan(xx) Begin Date > 19990630 Where xx = 01 through 12 Using NSLDS or the ISIR process involves researching individual transfer students. The only way to know with certainty for a significant number of borrowers is to send in origination records. We recommend that you isolate the transfer students and send in batches of loan origination (LO) records for them before they sign notes. ATTACHMENTS (available on the Direct Loan web site at (www.ed.gov/DirectLoan) Master Promissory Note Edits We have attached the system edits and the manual review edits for master promissory notes. Order Form We have also attached the order form for ordering notes and Disclosure Statements. Although most schools will not need Disclosure Statements, we have them available for schools that send their own disclosures. Plain Language Disclosure Finally, we have included a copy of the Plain Language Disclosure as an attachment. In most cases, the LOC will send this along with the Disclosure Statement. However, if you plan to send your own Disclosure Statement, you must enclose a Plain Language Disclosure. These will not be available for order. You may photocopy as many as you need. Again, the attachments will be posted on the Direct Loan web site as soon as possible at www.ed.gov/DirectLoan. Thank you for your ongoing partnership in the Direct Loan Program. Sincerely, Margaret E. White Acting Lead, Title IV Delivery Schools Channel |