New MPN Q&As
The National Council of Higher Education Loan Programs (NCHELP) Master Promissory Note (MPN) Task Force recently released a new set of Questions and Answers (Q&As) dealing with MPN processing and implementation. The Q&As are arranged by topics (e.g., lender, school, multi-year, etc.) in order to assist the reader in finding answers to relevant issues. The portable document format (PDF) is available, along with additional MPN information, in the Schools & Lenders section of TG Online.
In addition, the NCHELP CommonLine Workgroup has updated the Q&As for Release 4. The Release 4 Q&As address reporting issues and are located at www.nchelp.org under "CommonLine."
To whet your appetite for MPN knowledge, here are a few of the questions included in the new MPN Q&As.
Q:If a borrower transfers to a new school, how will the new school know if the borrower has an active MPN with a lender?
A: The new school will receive student history from the central processor (on the ISIR), which will contain previous loan information but does not indicate whether an active MPN exists. If there is doubt, the school could contact the lender or simply assume that the lender will meet its HEA obligation to secure a valid MPN before disbursing.
Q: Under what scenarios do lenders expect to transfer origination rights?
Q: If a paper school certification form has one guarantor printed on the top, can the form be used to guarantee a loan with a different guarantor, just like the common application?
A: When loans are sold, the two parties to the transaction determine the details of the loan sale including who will make subsequent loans to the borrower. Some examples of cases where the rights to originate future loans are transferred include bank mergers and acquisitions as well as cases where the originating lender no longer plans to originate loans.
A: Yes. Since the forms are printed by multiple parties now - lenders, guarantors, and service providers - the MPN can be used for any lender, guarantor or service provider, no matter which name is printed at the top of the page.
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