() Summary: Revised Master Promissory Note Addendum and Revised Plain Language Disclosure for Direct Subsidized Loans and Direct Unsubsidized Loans

Publication Date: March 06, 2008

Bulletin ID: DLB-08-06

Summary: Revised Master Promissory Note Addendum and Revised Plain Language Disclosure for Direct Subsidized Loans and Direct Unsubsidized Loans

Posted on 03-06-2008

Dear Direct Loan Colleague:

As a result of changes made to the terms and conditions of Direct Subsidized Loans and Direct Unsubsidized Loans by the College Cost Reduction and Access Act (the CCRAA), Pub. L. 110-84, we are providing a revised Addendum to the Direct Subsidized Loan/Direct Unsubsidized Loan Master Promissory Note (Direct Subsidized Loan/Direct Unsubsidized Loan MPN Addendum) and a revised Plain Language Disclosure for Direct Subsidized Loans and Direct Unsubsidized Loans (Direct Subsidized Loan/Direct Unsubsidized Loan PLD).

Both revised documents are attached to this bulletin, apply to Direct Subsidized Loans and Direct Unsubsidized Loans only, and replace the previous versions of these documents. The attached documents include a revision date of "01-15-2008" in the lower right corner to clearly distinguish them from the previous versions. A school should discard the previous versions once it begins using the revised versions.

Note: Information about a revised Direct Subsidized Loan/Direct Unsubsidized Loan Master Promissory Note will be provided in a Direct Loan Bulletin later this year.

Implementation of Revised MPN Addendum and Revised PLD for Direct Subsidized Loans and Direct Unsubsidized Loans

Revised Direct Subsidized Loan/Direct Unsubsidized Loan MPN Addendum

We are in the process of printing the revised Direct Subsidized Loan/Direct Unsubsidized Loan MPN Addendum and making the necessary modifications to the Direct Loan Electronic MPN Web site.

• We expect that the revised paper MPN Addendum will be available for schools to order in bulk from the FSA Pubs Web site on or about March 16, 2008. A PDF version of the revised MPN Addendum will be available on the Direct Loan Web site on March 16, 2008.
  
• Beginning March 16, 2008, we will replace the current MPN Addendum with the revised version during Steps 5, 7, and 9 of the electronic MPN completion process on the Direct Loan Electronic MPN Web site. The revised version will also be part of the final PDF document viewed on the Web site.
  
• Beginning March 16, 2008, we will include a revised MPN Addendum in paper Subsidized/Unsubsidized MPN packages under the following circumstances:

  • When the school has opted to have the Common Origination and Disbursement (COD) System print MPNs; or

  • When the school has not opted to have the COD System print MPNs, but includes a Promissory Note Print code of "S", "R", "Z", or "V" in the award.

Schools must begin using the revised Direct Subsidized Loan/Direct Unsubsidized Loan MPN Addendum as follows:

• A school that wants to program and produce the MPN Addendum must begin using the revised MPN Addendum as soon as it is able to make the necessary programming changes.
  
• A school that wants to order paper copies of the MPN Addendum from us must begin using the revised version as soon as possible after it is available for order and delivery.
  
• A school that has its borrowers complete MPNs electronically is not required to provide the MPN Addendum to borrowers. (As a reminder, a school may encourage, but not require, its students to complete an MPN electronically.)

Of course, any school may choose to print the attached Direct Subsidized Loan/Direct Unsubsidized Loan MPN Addendum for distribution to its borrowers.

Revised Direct Subsidized Loan/Direct Unsubsidized Loan PLD

We are in the process of printing the revised Direct Subsidized Loan/Direct Unsubsidized Loan PLD and making the necessary modifications to the COD System.

• We expect that the revised paper PLD will be available for schools to order in bulk from the FSA Pubs Web site on or about March 16, 2008.
  
• Beginning March 16, 2008, a PDF version of the revised PLD will be available on the Direct Loan Web site.
  
• Beginning March 16, 2008, we will include a PLD in paper Subsidized/Unsubsidized Disclosure Statement packages under the following circumstances:

  • When the school has opted to have the COD System print Disclosure Statements; or

  • When the school has not opted to have the COD System print Disclosure Statements, but includes a Disclosure Statement print code of "Y" or "R" in the award.

A school that provides the Subsidized/Unsubsidized Disclosure Statement to borrowers must begin using the revised Direct Subsidized Loan/Direct Unsubsidized Loan PLD for borrowers who are receiving second or subsequent loans under a previously signed MPN as follows:

• A school that wants to order paper copies of the PLD from us must begin using the revised version as soon as possible after it is available for order and delivery.
  
• A school that wants to print the PDF version of the PLD must begin using the revised version as soon as possible.

If you have questions about the information contained in this bulletin, please contact the COD School Relations Center at 800/848-0978 or by e-mail at CODSupport@acs-inc.com.

Thank you for your ongoing partnership in the Direct Loan Program.

Sincerely,

William Leith
Acting General Manager, Application, Operations and Delivery Services