| Publication Date: June 23, 2008 Bulletin ID: DLB-08-15 Summary: Revised Master Promissory Note for Direct Subsidized Loans and Direct Unsubsidized Loans (Corrected Attachments on 7/10/2008) Posted on 06-23-2008 Note: This Direct Loan Bulletin was updated on July 10, 2008 by replacing the two Master Promissory Note (MPN) attachments and the one Borrower's Rights and Responsibilities Statement attachment with corrected files. We did this to correct four minor formatting errors in the "Repaying Your Loans" chart on the last page of each document. Under the "Standard" column, we inserted commas in the "Total" amounts for the first three debt levels (4,471, 6,905, and 7,595). Under the "Income Contingent - Income = $15,000" column, we correctly placed the comma in the "Married/HOH" amount for the $7,500 debt level (14,019). Dear Direct Loan Colleague: This bulletin announces the availability of a revised Federal Direct Subsidized Loan and Direct Unsubsidized Loan Master Promissory Note (Direct Subsidized/Unsubsidized Loan MPN) and related forms, and provides guidance on the implementation of these documents. Revised Direct Subsidized/Unsubsidized Loan MPN The Office of Management and Budget (OMB) has approved a revised Direct Subsidized/Unsubsidized Loan MPN under OMB Control Number 1845-0007, with a new expiration date of 05/31/2011. The revised Direct Subsidized/Unsubsidized Loan MPN reflects the following significant changes from the current version of the Direct Subsidized/Unsubsidized Loan MPN:
The revised Direct Subsidized/Unsubsidized Loan MPN will replace the current Direct Subsidized/Unsubsidized Loan MPN that has an expiration date of 10/31/2005, as well as the current Direct Subsidized/Unsubsidized Loan BRR. In addition, the addendum that accompanies the current Direct Subsidized/Unsubsidized Loan MPN will no longer be needed once the revised Direct Subsidized/Unsubsidized Loan MPN has been implemented, since the revised MPN includes all of the HERA and CCRAA changes that are explained in the addendum. For reference, we have attached the revised Direct Subsidized/Unsubsidized Loan MPN to this bulletin. Timeline for Transition to the Revised Direct Subsidized/Unsubsidized Loan MPN We are in the process of printing the revised Direct Subsidized/Unsubsidized Loan MPN and making the necessary changes to Federal Student Aid systems to allow for implementation of the revised form. Additional information about system implementation and related outage information will be provided in a forthcoming Electronic Announcement posted on the Information for Financial Aid Professionals (IFAP) Web site. The revised Direct Subsidized/Unsubsidized Loan MPN will be implemented as follows: Paper Direct Subsidized/Unsubsidized Loan MPN
More detailed information on Federal Student Aid’s implementation of the revised Direct Subsidized/Unsubsidized Loan MPN (paper version) and appropriate school actions is provided in an attachment to this bulletin titled “Implementation Guidance for the Revised Direct Subsidized/Unsubsidized Loan MPN (Paper Version).” Note: The attached implementation guidance applies only to the paper version of the revised Direct Subsidized/Unsubsidized Loan MPN. As in the past, s chools are not required to provide a paper copy of the Direct Subsidized/Unsubsidized Loan MPN to borrowers who complete the MPN electronically. Although we encourage the use of the electronic MPN option, we remind schools that they may not require student or parent borrowers to complete MPNs electronically. Electronic Direct Subsidized/Unsubsidized Loan MPN
Schools do not have to take any action if their student and parent borrowers use the Direct Loan Electronic MPN Web site. Contact Information 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 |