July 1, 2004 PLUS MPN Implementation Reminder

    Utah Higher Education Assistance Authority wishes to remind institutions that July 1, 2004 is the implementation deadline for the new Federal PLUS MPN.  The U.S. Department of Education approved a new PLUS Loan Application and Master Promissory Note in February 2003.  The new PLUS MPN must be used for all loan periods beginning on or after July 1, 2004 or for any loan certified on or after that date, regardless of the loan period.  Please discard all obsolete PLUS forms.

    For the 2004-2005 academic year, schools may submit either paper or electronic PLUS MPN certifications to UHEAA.  In order to process the PLUS MPN, UHEAA's system must be configured for each school.  Institutions should contact their respective UHEAA school services representative to assure all systems are properly configured before transmitting any PLUS MPNs.

    As a reminder, each school and lender must have and document the process by which the requested loan amount is collected from the borrower.  For details please refer to Dear Colleague Letter GEN-03-03, which can be found 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.  Active confirmation of the requested loan amount is required.  The school must certify the lesser of the maximum amount for which the parent borrower is eligible or the amount requested by the borrower.

    UHEAA is also prepared to assist schools and parent borrowers seeking a preliminary credit approval prior to completion and submission of a PLUS application.  An updated PLUS Loan Credit Approval Request form was sent on February 9, 2004, in issue #3 of the Bulletin.  Or, a form is available on UHEAA's Web site, uheaa.org, under the link http://www.uheaa.org/uslphome.htm.  The form may be completed and signed by the parent borrower and faxed by the school to UHEAA.

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