PLUS Master Promissory Note Implementation

    The Utah Higher Education Assistance Authority (UHEAA) is pleased to announce it is now accepting the Federal PLUS Loan Application and Master Promissory Note (PLUS MPN). UHEAA has enhanced its systems to incorporate the PLUS MPN form and process, which is available for loan periods beginning on or after July 1, 2003.

    Schools opting to use the PLUS MPN process for the 2003-2004 academic year can send electronic or paper PLUS MPN certifications to UHEAA.  Schools that do not incorporate the PLUS MPN process during the 2003-2004 academic year may continue to submit the current form entitled, "Application and Promissory Note for Federal PLUS Loan."  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.

    In order to process the PLUS MPN, UHEAA's system must first be configured for each individual school.  Schools should contact their respective school services representative at UHEAA prior to transmitting PLUS MPNs to assure all systems are properly configured.

    As a reminder, each school and lender must establish and document the process under which the requested loan amount is collected from the borrower in accordance with the Higher Education Act, 34 Code of Federal Regulations, and other publications of the U.S. Department of Education.  For further detail please refer to Dear Colleague Letter GEN-03-03 at http://www.ifap.ed.gov/dpcletters/GEN0303.html.

    The requested loan amount must be collected from the parent borrower prior to the certification or approval of each loan.  The requested amount can be collected by a separate PLUS loan amount request form, a parent response section on the institution's financial aid award letter, or documented telephone or electronic requests.  The school must certify the lesser of the maximum amount for which the parent is eligible or the amount requested by the parent borrower.  If the paper or electronic school certification includes the borrower's requested amount, UHEAA will process the loan with the understanding that the institution has obtained the amount from the borrower.  If the school does not provide the requested amount, UHEAA will contact the borrower to obtain that information.

    Any questions related to this Bulletin should be directed to UHEAA Policy and Training at 801.321.7166, or by e-mail at mjohnson@utahsbr.edu.