Maintained for Historical Purposes

This resource is being maintained for historical purposes only and is not currently applicable.

() Electronic Master Promissory Note for Direct Subsidized Loans and Direct Unsubsidized Loans

Publication Date: May 2001

Bulletin ID: DLB-01-09

Electronic Master Promissory Note for Direct Subsidized Loans and Direct Unsubsidized Loans

May 2001

DLB-01-09

Subject: Electronic Master Promissory Note for Direct Subsidized Loans and Direct Unsubsidized Loans

Dear Partner:

SFA is pleased to announce that the electronic Master Promissory Note (MPN) for Direct Subsidized Loans and Direct Unsubsidized Loans will be ready for your students to use beginning July 2, 2001. The electronic MPN allows a student to complete and sign an MPN over the web as an alternative to using a paper MPN. As we prepare to implement the electronic MPN, we wanted to tell you what you will need to do to participate in the electronic MPN process and explain how the process will work for your students.

What You Need To Do To Participate

If your school wants to offer the electronic MPN option to your students when it becomes available on July 2, 2001, you must complete and submit the attached "School Options" form to the Loan Origination Center (LOC) by June 1, 2001.

  • You may fax your completed form to the LOC at 800-557-7396 or you may call your CSR and complete the form by phone.
  • If you complete the form by phone, your CSR will fax the completed form to you for your records.
  • If the LOC does not receive the form from your school by June 1, 2001, we will assume that you do not want to participate in the electronic MPN process as early as July 2, 2001.

As you will see on the "School Options" form, we need to know--

  • Your school's code;
  • Your school's name;
  • Whether you want the LOC to have a loan origination record on file before a student completes an electronic MPN; and
  • Whether you want to add text to the message that we will send to a student who provides an e-mail address after the student submits an electronic MPN to us. (For example, some schools have said that they want to tell their students what will happen after the school receives confirmation of a completed MPN. If you choose this option, SFA will review the text before adding it to the message that we send to your students.)

Beginning July 3, 2001, you may sign up to participate in the electronic MPN process through the new "School Options" web page within the Loan Origination web system. Through this web page you also will be able to change your electronic MPN participation status and all of your participation-related information except for text that you add to the standard message. If you want to change your school's additional text, you will need to contact your CSR to initiate SFA's review of the text.

The Electronic MPN Process

We have developed a separate web site through which your students will complete electronic MPNs. Shortly, we will provide the address for this web site to participating schools. Through this web site, your students will be able to--

  • Complete new electronic MPNs;
  • Retrieve previously submitted electronic MPNs; and
  • Access electronic Direct Loan Entrance Counseling.

To complete new electronic MPNs and retrieve previously submitted electronic MPNs, your students will need to provide their U. S. Department of Education issued PINs. They also must have Adobe Acrobat Reader version 4.0 or higher and a valid browser on their computers. Students who use an assistive device must have Adobe Acrobat Reader version 5.0.

Your students must allow enough time to complete the entire process in a single session. If a student exits the web site before submitting the signed MPN and returns later, the student will have to start over from the beginning. Here is a step-by-step summary of the electronic MPN process:

STEP 1: PIN REGISTRATION

First, the student will be transferred to the PIN web site to confirm his or her identity. The student must correctly enter his or her PIN, Social Security Number, date of birth, and the first two letters of his or her last name. The PIN web site will be accessed to validate the information the student enters. Before the student can proceed to Step 2, the student's information must be successfully validated. The successful validation of the student's information will be recorded and made part of his or her completed MPN.

  • If the student does not have a PIN, the student will be given the option of going to the PIN web site to obtain a PIN. Alternatively, the student can go to his or her school's financial aid office to initiate the paper MPN process.

STEP 2: DISCLOSURE AND CONSENT

After returning to the electronic MPN web site, the student will be asked to read information about using an electronic MPN and to tell us whether or not he or she agrees to use an electronic MPN. Before the student can proceed to Step 3 of the electronic MPN process, the student must provide this consent. The student's consent to use an electronic MPN will be recorded and made part of his or her completed MPN.

STEP 3: PROVIDE NAME AND SCHOOL

The student will be asked to provide his or her full legal name and school information. The student will be able to review and modify this information if necessary before it is added to the electronic MPN.

  • Each school may choose the name that it wishes to appear here. Otherwise, we will use each Direct Loan school's name as it currently exists within the Loan Origination System.
  • After the student selects a school, we will determine if a loan origination record is on file (if required by the school) and if a new MPN is required according to normal MPN processing rules.
  • If the selected school is not participating in the electronic MPN process, the student will be informed that he or she may not complete an electronic MPN for a loan(s) at that school. The student will be able to select another school or exit the process.
  • If the selected school requires that a loan origination record be on file before the student completes an electronic MPN and a loan origination record is not on file, the student will be informed that he or she may not complete an electronic MPN for a loan(s) at that school. The student may select another school or exit the process.
  • If a school requires that a loan origination record be on file before a student completes an electronic MPN and all loan origination records have been linked or will be linked to a valid MPN already on file, the student will be informed that he or she does not have to complete an electronic MPN for a loan(s) at that school. However, the student may choose to do so.

STEP 4: READ BORROWER'S RIGHTS AND RESPONSIBILITIES

The student will be asked to read the Borrower's Rights and Responsibilities statement that provides important information about the loan(s) the student may receive under the MPN. Before the student can proceed to Step 5 of the electronic MPN process, the student must confirm that he or she has read, understands, and agrees to the Borrower's Rights and Responsibilities statement. The student's confirmation that he or she has read, understands, and agrees to the Borrower's Rights and Responsibilities Statement will be recorded and made part of the completed MPN.

STEP 5: COMPLETE MPN

During this step, the student will be asked to provide the remaining information necessary to complete the MPN. This will include the student's permanent address, driver's license number and state, e-mail address (optional), and telephone number. The student will also be asked to provide the names, addresses, and telephone numbers of two references who have known the student for at least three years. One should be a parent or legal guardian. Depending on the student's school, some of this information will already be filled in.

  • If there is a loan origination record on file, the student's permanent address, e-mail address, and telephone number will be filled in. The student may change this information for the purpose of completing the electronic MPN; however, we will not make corresponding changes in the loan origination record.
  • The student must provide information for two references. We will edit this information to ensure that the student provides the names of two different people at different addresses within the United States.

STEP 6: REVIEW DRAFT MPN

The student will be asked to review a draft version of the MPN that will include the information provided in Steps 3 and 5. Before the student can proceed to Step 7 of the electronic MPN process, the student must confirm that he or she has reviewed the information and has read all sections of the MPN. The student's confirmation that he or she has reviewed the information and read all sections of the MPN will be recorded and made part of his or her completed MPN.

  • The draft MPN is a web-based HTML version that shows the student the full text of the MPN, along with the information that the student provided in Steps 3 and 5.

STEP 7: SIGN YOUR MPN

The student will be asked to review the Promise to Pay section of the MPN and then electronically sign the MPN by typing in his or her full legal name as it appeared on the draft MPN that was shown in Step 6. The student will still have the opportunity at this point to modify the information provided in Steps 3 and 5 or to cancel the electronic MPN. Before the student can proceed to Step 8 of the electronic MPN process, the student must sign the MPN. The time and date that the student signs the MPN will be recorded and made part of the completed MPN.

STEP 8: REVIEW SIGNED MPN

The student will be asked to read an Adobe PDF version of the signed MPN in its entirety. There will be a 3-character Confirmation Code at the end of this document. Before the student can proceed to Step 9 of the electronic MPN process, the student must confirm that he or she has read the completed MPN and must enter the Confirmation Code. The student's confirmation that he or she has read the completed MPN and Confirmation Code will be recorded and made part of the completed MPN.

  • A student who uses an assistive device must have Adobe Acrobat Reader version 5.0.

STEP 9: CONFIRM ACCEPTANCE OF MPN TERMS AND SUBMIT MPN

The student will be asked to confirm that he or she agrees to the terms and conditions of the MPN. The student will also be given a final opportunity to modify the information provided in Steps 3 and 5 or to cancel the MPN. If the student agrees to the terms and conditions of the MPN, the student may complete the electronic MPN process by submitting the MPN to the U.S. Department of Education.

  • The student may review the signed MPN again before submitting it to us, but is not required to do so.
  • Once the student submits the signed MPN to us, it is saved to our database and is the authoritative copy of the MPN.
  • The authoritative copy of the MPN includes the time and date of each action that the student took during the electronic MPN process, including the final submission of the signed MPN.
  • If the student provides an e-mail address, we will send a message informing the student that we have received the electronic MPN and will send an electronic confirmation of the completed MPN to the student's school within 24 hours. Schools may choose to add text to this standard message.

STEP 10: SUCCESS! NOW PRINT YOUR MPN

The student's MPN is now complete. Step 10 includes links to instructions that tell the student how to:

  • Clear personal information from the student's web browser;
  • Print and/or save a copy of the completed MPN;
  • Retrieve a copy of the completed MPN at a later date; or
  • Ask us to send the student a copy of the completed MPN.

We are very excited about this opportunity to offer an electronic MPN to your students and thank you for your continued partnership in the Direct Loan program.

Sincerely,

Jane Holman
Acting Lead, Title IV Delivery
Schools Channel