<p>Are the kids required to fill out a new promissory note with the changes in the Federal lending? It's interesting because the paperwork for my son's college still utilizes the same service for Staffords with the same three lenders (Citi, Wells Fargo, Sallie Mae) but he's getting the impression he needs to fill out a new promissory note. Anyone know the definitive answer?</p>
<p>My school sent out a memo about the transition from Federal Family Education Loan (FFEL) to Direct Loan (DL) which said, “For students, the process will be as simple as we can make it, but it will require e-signing a new master promissory note over the summer.” Parents will have to sign a new note due to the transition to the Federal Direct PLUS loans as well.</p>
<p>When my school switched to DL a couple years ago, all students had to do new MPNs. </p>
<p>Just so everyone knows, even though schools “have” to go with Direct Lending now, the government is assigning each student randomly to one of several “servicers.” Neither you nor the school has any say in who your assigned servicer will be, although you WILL have the same servicer for all DL loans. This is a new twist, so how it works out remains to be seen.</p>
<p>Wow, I’m pretty smart, but I’m still scratching my head. Got an e-mail from my new pals in finaid at the boys college and they sent me to studentloans.gov. Hopefully all will go smoothly with 2 in school in the fall! Thanks for the info, too, Kelsmom to watch on the servicing. I will say my soon to be college senior answered all the questions correctly in the entrance counseling so maybe he was listening to us back in 2007! Now I have to get my newly minted high school graduate to sit down for an hour.</p>
<p>If my son has an unsubsidized Stafford Loan from last year through BofA and is not taking another loan for this final year, then he doesn’t need to fill out a new MPN, yes? The old loan stays the same? Direct lending is only for loans going forward?</p>
<p>^^that is my understanding, if he is not taking Staffords for this upcoming year he would not have to re-do the MPN.</p>
<p>That is correct.</p>