Publication Date: October 2003
Bulletin ID: DLB-03-42
Summary: Use of the Electronic Master Promissory Note is Voluntary
Posted on 10-29-2003
October 2003
DLB-03-42
Subject: Use of the Electronic Master Promissory Note is Voluntary
Dear Partner:
This bulletin is to provide some guidance about the use of the electronic Master Promissory Note (MPN). While we encourage you to use the Direct Loan electronic MPN process, we would like to remind you that schools may not require borrowers to use electronic MPNs.
The Direct Loan electronic MPN process was developed in accordance with the "Standards for Electronic Signatures in Electronic Student Loan Transactions" (Standards) as described in Dear Partner Letter GEN-01-06 (May 2001). The Standards provide that a borrower must voluntarily consent to use an electronic record, and that before giving consent, a borrower must be given information on his or her right or option to conduct the transaction on paper or in non-electronic form. Consistent with this provision, the "Disclosure and Consent" step of the Direct Loan electronic MPN process tells borrowers that they may choose to use a paper version of the MPN by contacting their school's financial aid office, and requires them to agree to use an electronic MPN before they can continue to the next step. If a borrower asks to use a paper version of the MPN, you must comply with that request.
If you have questions about this bulletin, please contact COD School Relations at 800/848-0979 or by email at codsupport@acs-inc.com. Thank you for your ongoing partnership in the Direct Loan Program.
Sincerely,
Jane Holman
Acting Director, Title IV Delivery
Schools Channel