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Publication Date: January 8, 2008 DCL ID: FP-08-02 Subject: Promissory Note Addenda and Plain Language Disclosures for Federal Family Education Loan (FFEL) Program Loans Summary: This letter announces revised promissory note addenda and Plain Language Disclosures for Federal Stafford Loans and Federal PLUS Loans, and a new promissory note addendum for Federal Consolidation Loans. Posted on 01-08-2008 Attached to this letter are revised promissory note addenda and Plain Language Disclosures (PLDs) for Federal Stafford Loans and Federal PLUS Loans, and a new promissory note addendum for Federal Consolidation Loans. The revised Federal Stafford Loan and Federal PLUS Loan addenda and PLDs explain the changes to loan terms and conditions that were made by both the Higher Education Reconciliation Act of 2005 (the HERA) and the College Cost Reduction and Access Act of 2007 (the CCRAA). The new addendum for the Federal Consolidation Loan Application and Promissory Note explains the changes to the terms and conditions of Federal Consolidation Loans that were made by the CCRAA. Microsoft Word and PDF versions of the following documents are attached:
Until revised Stafford and PLUS MPNs and a revised Federal Consolidation Loan Application and Promissory Note are approved for use, the attached addenda must be used with the current promissory notes to inform borrowers of the changes made to the terms and conditions of their loans by the HERA and/or the CCRAA. The revised Stafford and PLUS PLDs provide information on the HERA and CCRAA changes for borrowers who are receiving second or subsequent loans under previously signed MPNs, or who may have signed an MPN for the first time before the addenda were available. The Secretary will be using similar forms in the William D. Ford Federal Direct Loan Program. Implementation of the revised Stafford and PLUS MPN addenda and PLDs, and the new addendum for the Federal Consolidation Loan Application and Promissory Note Program participants must discontinue use of the current Stafford and PLUS Addenda and PLDs (see Dear Colleague Letters FP-06-05 and FP-07-02) and begin using the attached revised addenda and PLDs as soon as possible. As explained in Dear Colleague Letter FP-07-05, the approval of a revised Federal Consolidation Application and Promissory Note that included the HERA changes eliminated the need for the previous Consolidation Addendum. However, a new Consolidation Addendum is now required to explain the CCRAA changes. Program participants must begin providing individuals who apply for Federal Consolidation Loans with the attached Consolidation Addendum as soon as possible. For more detailed guidance on the use of the attached addenda and PLDs, program participants should continue to refer to Dear Colleague Letter FP-06-05. Printing Instructions No changes to, deletions from, or additions to the language of the attached addenda and PLDs are permitted. The revised Stafford and PLUS Addenda and the new Consolidation Addendum must be printed using black ink on white paper. The typeface, point size, and general presentation of the addenda may not be changed from the documents that the Department has approved. The text of the revised Stafford and PLUS PLDs may be enhanced by printing in any format or colors and may be combined with other information or graphics. Obtaining Copies for Reproduction The revised Stafford and PLUS Addenda and PLDs are available in Microsoft Word and PDF format as attachments to this letter. In addition, the documents are available on the National Council of Higher Education Loan Programs (NCHELP) website at www.nchelp.org. Guaranty agencies and lenders are responsible for ensuring that the addenda and PLDs they use are identical to the documents approved by the Department. No changes may be made to the documents except as expressly authorized above. Sincerely, Jeff Baker, Director Attachments/Enclosures: Federal Stafford Loan Plain Language Disclosure (Stafford PLD) in PDF Format, 27KB, 1 page Federal PLUS Loan Plain Language Disclosure (PLUS PLD) in Microsoft Word Format, 32KB, 1 page Federal PLUS Loan Plain Language Disclosure (PLUS PLD) in PDF Format, 27KB, 1 page |