Stafford MPN Notification or Confirmation Requirements

    The Utah Higher Education Assistance Authority (UHEAA) offers the following reminders concerning the requirements to be followed in the administration of the Federal Stafford Loan Program.

    Several control points in the FFELP Stafford loan-making process provide consumer protection and help prevent fraud and abuse.  Notification and confirmation processes are two of these control points.  Schools decide which of these processes will be used to ensure that the borrower has control over loan amounts and loan type.  Regardless of the method used by the school, UHEAA provides a value-added safeguard through follow-up notification.

    By definition, notification is a control option whereby the borrower is provided with information on the proposed loan amount and type and the borrower is asked to respond only if he or she wishes to reject the loan, reduce the loan, or adjust the loan mix (amount of subsidized and unsubsidized loans).  Confirmation is an option whereby the borrower is required to take action to confirm the amount and type of loan offered by the school or to request a specific loan amount.  Schools must keep documentation of the procedure(s) used to either notify the student borrower or have the borrower confirm the offered Stafford loan amounts.  For further information, please refer to Dear Colleague Letter GEN-98-25 at http://www.ifap.ed.gov/dpcletters/doc0489_bodyoftext.htm.

    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.