|
 |
The PLUS MPN must be used for all Federal PLUS loans for loan periods beginning on or after July 1, 2004, or for any loan certified on or after July 1, 2004, regardless of the loan period. Parents of dependent undergraduate students as well as graduate and professional students can borrow Federal PLUS loans.
The PLUS MPN is designed to be used as a multi-year note. Under the PLUS MPN process, borrowers will sign a PLUS MPN only once, at the time they first borrow. Borrowers may then obtain additional loans based on the originally signed MPN, during the same or subsequent years, for up to 10 years after the date the PLUS MPN was first signed.
The multi-year feature of the PLUS MPN is available to borrowers for students attending any domestic school that participates in FFELP. For students attending a foreign school, a borrower can use the multi-year feature only if the school has been approved by ED to use the multi-year feature. Otherwise, a borrower must sign a new PLUS MPN for each new loan.
Requested Loan Amount
With the PLUS MPN, the borrower is required to indicate the amount he/she wants to borrow under the Federal PLUS Loan Program to either the school, lender or guaranty agency. Regardless of the maximum amount a borrower is eligible to borrow (based on cost of attendance minus estimated financial aid), a lender may not make a loan that is more than the amount requested by the borrower.
The Federal PLUS Loan Information and School Certification form is designed to allow the school to collect the borrower's requested loan amount. Other ways to obtain this information is by a separate Federal PLUS loan amount request form, a parent response section on the institution’s financial aid award letter, or documented telephone or electronic requests.
MPN Expiration and Conditions
As with the Federal Stafford Loan MPN, a lender may not make any subsequent loans under a PLUS MPN after the earliest of:
- the date the lender receives written notification from the borrower asking that a previously signed PLUS MPN no longer be used as the basis for additional loans;
- 12 months after the date the original PLUS MPN was signed if no disbursements were ever made under that MPN; or
- 10 years from the date the borrower signed the PLUS MPN, or the date the lender receives the PLUS MPN. However, if a portion of a loan is made on or before 10 years from the signature or receipt date, remaining disbursements of that loan may be made based upon that MPN.
|
