Dear Colleague Letter (FP-08-02) announced revised promissory note addenda and Plain Language Disclosures (PLD) for Federal Stafford Loans and Federal PLUS Loans, as well as a new promissory note addendum for Federal Consolidation Loans.

The revised Federal Stafford Loan and Federal PLUS Loan addenda and PLDs explain the changes to loan terms and conditions that were made by both the Higher Education Reconciliation Act of 2005 (the HERA) and the College Cost Reduction and Access Act of 2007 (the CCRAA).

The new addendum for the Federal Consolidation Loan Application and Promissory Note explains the changes to the terms and conditions of Federal Consolidation Loans that were made by the CCRAA.

Until revised Stafford and PLUS MPNs and a revised Federal Consolidation Loan Application and Promissory Note are approved for use, the addenda must be used with the current promissory notes to inform borrowers of the changes made to the terms and conditions of their loans by the HERA and/or the CCRAA. The revised Stafford and PLUS PLDs provide information on the HERA and CCRAA changes for borrowers who are receiving second or subsequent loans under previously signed MPNs, or who may have signed an MPN for the first time before the addenda were available.

Program participants must discontinue use of the current Stafford and PLUS Addenda and PLDs (see Dear Colleague Letters FP-06-05 and FP-07-02) and begin using the attached revised addenda and PLDs as soon as possible.

As explained in Dear Colleague Letter FP-07-05, the approval of a revised Federal Consolidation Application and Promissory Note that included the HERA changes eliminated the need for the previous Consolidation Addendum. However, a new Consolidation Addendum is now required to explain the CCRAA changes. Program participants must begin providing individuals who apply for Federal Consolidation Loans with the attached Consolidation Addendum as soon as possible.

Program participants should continue to refer to Dear Colleague Letter FP-06-05 for more detailed guidance on the use of the revised addenda and PLDs.

Direct questions regarding this announcement to the Office of Counsel and Regulatory compliance at 518-473-3986; for toll-free calls dial 1-866-431-HESC (1-866-431-4372). Send e-mails to AskPolicy@hesc.org.

Date posted: 1/9/08