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Trends and Issues

Shoptalk Online 490, February 10, 2009

Trends and Issues

Policy potpourri

Q.: Are there any restrictions for the serial use of a PLUS MPN in cases where a PLUS borrower uses an endorser to obtain the loan?

A.: Yes. Per Dear Colleague Letter GEN-03-03, when an endorser is used, the PLUS MPN becomes a "single-loan" promissory note because the endorser is liable only for the specific loan that he or she agreed to endorse. The lender must obtain a new MPN and new endorser addendum if the PLUS borrower (parent or student) requests either an increase in the loan amount or a subsequent PLUS loan.

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