Student Loans : News, Updates and Blog Posts

When used as a multi-year document, the Stafford loan MPN enables student borrowers to get additional loans without signing a new MPN.  However, there are still several circumstances that require a borrower to complete a new MPN.

A new MPN is required if the borrower’s FFEL lender changes, unless the change is a result of a merger or acquisition.  Below are some other instances that would require the borrower to complete a new Stafford loan MPN.

• the borrower transfers to a school that is not eligible to use, or chooses not to use, the multi-year feature of the MPN.

• the borrower transfers from an FFEL school to a Direct Loan school, and there’s no valid Direct Loan MPN on file with ED.  Similarly, a borrower needs a new MPN if transferring from a Direct Loan to an FFEL school, unless there is a valid MPN on file with the lender that the borrower uses. (New MPNs are also required if the school itself changes from using DL to FFEL or vice versa.)

• a school’s lender requests that a school no longer use the multi-year feature of the MPN.

Also, borrowers may request an annual MPN, or may request that no additional loans be made using their current multi-year MPN.  Requests that no additional loans are made using current multi-year MPNs must be in writing.  In some cases, a new MPN has to be executed because the maximum period for use of the MPN has expired.