Background
In a November 21, 2019 Electronic Announcement, we informed schools about a change to our approved Master Promissory Note (MPN) confirmation processes. The new process would require student and parent borrowers to view how much they currently owe in federal student loans, and to acknowledge that they have seen this amount before a school can make the first disbursement of the first Direct Loan that a student or parent borrower receives for each new award year.
The Annual Student Loan Acknowledgement process will continue to be available on StudentAid.gov. However, borrower completion of the Annual Student Loan Acknowledgement prior to disbursement will not be required for the 2021–22 Award Year.
At this time, all processing related to the Annual Student Loan Acknowledgement will continue under existing business rules. Schools will continue to receive information about a borrower’s completion of the Annual Student Loan Acknowledgement process on StudentAid.gov. However, we will not reject disbursement records submitted to the Common Origination and Disbursement (COD) System prior to the completion of the Annual Student Loan Acknowledgement.
Schools can adjust borrower notifications and make system modifications, as appropriate, to reflect the delay in the requirement.
Note: The COD Technical Reference currently includes information about the Annual Student Loan Acknowledgement as a requirement and about COD Reject Edit 225. We will be working to update the COD Technical Reference to reflect the delay with the next posting planned for June 2021.
If you have questions about this announcement, you may contact the COD School Relations Center at 1-800-848-0978. You may also email CODSupport@ed.gov.