If you have any questions about multi-year use of the MPN, please contact the FSA Customer Service Call Center.
|The Master Promissory Note
Below is the guidance from the Department of Education on the use of the serial feature of an MPN for schools that are currently non-serial. I had sent this out previously, then the DOE pulled the guidance back and has now changed the implementation date.
Loans certified by a school on or after March 1, 2003, regardless of the period covered by the loan.
Multi-Year Use of Master Promissory Notes by Schools posted on 11-29-2002
The regulations that govern the use of the Master Promissory Note (MPN) in the Federal Family Education Loan (FFEL) and the Federal Direct Loan (Direct Loan) programs allow student and parent borrowers at most four-year colleges and graduate or professional schools to use the multi-year feature of an MPN [See 34 CFR 82.401(d)(4) and 685.402(f)]. Borrowers attending those schools may receive loans for subsequent academic years based upon a previously signed MPN and are not required to sign another note. The regulations also provide that the Secretary may approve multi-year use of the MPN for borrowers at other schools or preclude the use of the multi-year feature of an MPN at an otherwise eligible school, including a four-year or graduate school.
The limitations on the use of the multi-year feature of the MPN were originally designed to provide an opportunity for the Secretary to monitor the new process before deciding whether to expand its use. We now believe that it is appropriate to authorize borrowers at additional schools to use the multi-year feature of the MPN. Therefore, unless a school is specifically informed otherwise, all schools participating in the FFEL or Direct Loan programs that are located in the United States may allow their student borrowers (and parent borrowers under the soon to be released PLUS MPN ) to use the multi-year feature of the MPN. Borrowers attending foreign schools may not use the multi-year feature of the MPN unless the Department specifically informs the school that its borrowers may use the multi-year feature of the MPN.
Under this new policy guidance students who are attending schools that are not four-year colleges or graduate or professional schools (or their parents) are eligible to receive loans for subsequent academic years based upon a previously signed MPN (even if that MPN was signed by the borrower prior to the effective date of this policy change). We urge schools to make certain that their students are aware of this change to the loan application process and its implications for them as Federal student loan borrowers.
Guidance on the use of the MPN in the FFEL and Direct Loan programs is included in the Student Financial Aid Handbook in Volume 8 (Direct Loan and FFEL Programs) beginning on page 8-37. Particular attention should be paid to the provisions relating to borrower confirmation and the expiration of an MPN for subsequent loans.
If you have any questions about multi-year use of the MPN, please contact the FSA Customer Service Call Center through any of the following means:
Via phone, Call Center staff members are available Monday through Friday between the hours of 9:00 AM and 5:00 PM Eastern Time) at 1-800-433-7327. After hours calls will be accepted by an automated voice response system. Callers leaving their name and phone number will receive a return call the next business day.
Via FAX, inquiries should be sent to the Call Center at (202) 275-5532. Via e-mail, inquiries should be directed to the Call Center staff at FSA.Customer.Support@ed.gov. Via the Schools Portal on the Internet, by going to www.sfa4schools.sfa.ed.gov then clicking on the "Got a Question?" button.
Jeffrey R. Andrade
Deputy Assistant Secretary
Office of Postsecondary Education
Additional guidance on the use of the new PLUS MPN will be provided shortly. In addition, we are currently working on an MPN for the Federal Perkins Loan Program. It is the Secretary's intent to approve all schools that participate in the Perkins Program for multi-year use of the new Perkins MPN. Specific guidance on the Perkins MPN implementation will be provided in a subsequent Dear Colleague Letter.