Publication Date: November 12, 2015

DCL ID:  GEN-15-21

Subject: OMB Approval of Federal Perkins Loan Program Master Promissory Note

Summary: This letter announces the availability of a new OMB-approved Federal Perkins Loan Master Promissory Note and provides guidance on the implementation of the new note.

Note: On November 17, 2015, we updated the Federal Perkins Loan Program Master Promissory Note to fix typographical errors. The corrected Master Promissory Note is attached to this notification.

Dear Colleague:

The Office of Management and Budget (OMB) has approved a new Federal Perkins Loan Program Master Promissory Note (Perkins MPN) under OMB Control Number 1845-0074. The newly approved Perkins MPN has an expiration date of September 30, 2018 and replaces the current Perkins MPN that has an expiration date of September 30, 2015.  There are no substantive differences between this new Perkins MPN and the Perkins MPN with the September 30, 2015 expiration date. The new Perkins MPN in PDF format is included as an attachment to this letter.

Institutions were notified in Dear Colleague Letter GEN-15-03, published on January 30, 2015, that the authority to make Federal Perkins Loans to new borrowers ended on September 30, 2015.  We are releasing this new Perkins MPN because we understand that some institutions may require a borrower who meets the Perkins Loan grandfathering provisions, as described in the Dear Colleague Letter, to complete a new promissory note each year.

Effective date for use of the revised Perkins MPN

As of January 1, 2016, schools may no longer distribute the Perkins MPN with the September 30, 2015 expiration date. On or after January 1, 2016 only the new Perkins MPN included with this Dear Colleague Letter may be distributed to borrowers. However, if prior to January 1, 2016, a school had already distributed the older Perkins MPN to a borrower, that MPN remains valid for making loans. If a school uses the Perkins MPN as a multi-award year promissory note eligible borrowers who previously signed a Perkins MPN with an earlier expiration date may continue to receive Perkins Loan advances under that MPN for up to 10 years from the date the student signed that MPN.

Document formats for the revised Perkins MPN

A school may not change the presentation of the Perkins MPN. Nor may a school change, delete, or add to the text of the MPN, except that the bracketed sentence relating to minimum monthly payment may be deleted at the option of the school.

Consistent with past guidance, the addition of coding (for example, bar coding for filing or processing purposes) is permitted.

If you have questions about this letter or the implementation of the new Perkins MPN, please contact Tamy Garofano at (202) 377-4075.

Sincerely,

Jeff Baker, Director
Policy Liaison and Implementation
Federal Student Aid
U.S. Department of Education

Attachments/Enclosures:

GEN-15-21: Federal Perkins Loan Master Promissory Note in Microsoft Word Format, 75KB, 4 Pages

   

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