January 2004

DLB-04-02

Subject: The Previous (non-MPN) Direct PLUS Loan Application and Promissory Note Expires on January 31, 2004

Dear Partner:

In Direct Loan Bulletin 03-07 (Implementation of a Master Promissory Note for Direct PLUS Loans), we notified schools that the new Federal Direct PLUS Loan Application and Master Promissory Note (Direct PLUS MPN) and related documents were to be used beginning with any Direct PLUS Loan made for 2003-2004, and that the previous (non-MPN) Federal Direct PLUS Loan Application and Promissory Note and related documents remained valid and had to be used for making Direct PLUS Loans for years prior to 2003-2004. This bulletin provides schools with updated information on the status of the previous forms.

The previous Federal Direct PLUS Loan Application and Promissory Note (OMB. No. 1840-0666 or 1845-0051) and the accompanying Endorser Addendum (OMB No. 1840-0679 or 1845-0060) were approved by OMB for use through January 31, 2004 to allow for a transition to the Direct PLUS MPN. As there should no longer be a need for the old forms, they will not be renewed. This means that after January 31, 2004, the previous Federal Direct PLUS Loan Application and Promissory Note and Endorser Addendum, along with the Federal Direct PLUS Loans (For Parent Borrowers) Rights and Responsibilities that accompanied those forms, may no longer be used for making any Direct PLUS loans.

Any Direct PLUS loan made after January 31, 2004 that requires a borrower to sign a new promissory note must be made with the Direct PLUS MPN (OMB No. 1845-0068) and associated documents (Endorser Addendum, Direct PLUS Loans Borrower's Rights and Responsibilities Statement, and Direct PLUS Loans Plain Language Disclosure).

If you have any questions about this bulletin, please contact the COD School Relations Center at 800/848-0978 or email, 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