SCT Banner Financial Aid / Release Guide / 7.0

Section 28 Multi-Award Year Perkins MPN - Functional
Overview
Section 28
Multi-Award Year Perkins MPN - Functional
Overview
The Office of Management and Budget (OMB) has approved the Federal Perkins
Loan Master Promissory Note (Perkins MPN). The Perkins MPN may be used for
award years beginning on or after July 1, 2003. However, all schools must use the
Perkins MPN beginning with all new loans for Perkins and former National Direct
Student Loan (NDSL) borrowers made on or after November 1, 2004. The Perkins
MPN - which can be used for one or more Perkins Loans at one school -- will also be
used for loans made to former NDSL borrowers.
A school may choose to use the Perkins MPN as a single-award year promissory note
or as a multi-award year promissory note. Use of the Perkins MPN for a single-award
year is what schools have done in the past. This requires the borrower to annually
sign a new promissory note at a minimum. With the implementation of the Perkins
MPN, schools have the option to use the promissory note for multi-award years.
That is, schools only need to have a student sign the Perkins MPN once for the first
loan made under the note. The Perkins MPN will cover Perkins loans made until the
Perkins MPN expires (generally 10 years).
Once the Perkins MPN expires, no further loans may be made against that MPN and
a new MPN must be completed prior to disbursement. A Perkins MPN expires on
the earliest of the following dates:
• The date the school receives the borrower's written notice that no further loans
may be made under the MPN,
• Twelve months after the date the borrower signs the MPN, if no disbursements
are made under the MPN; or
• Ten years after the date the borrower signs the MPN or the date the school
receives the MPN (except that a remaining portion of a loan may be disbursed
after this date)
Note: No additional functionality was added to print the new Perkins MPN.
However, functionality was added to manage the use of a multi-award
year Perkins MPN. Banner's existing functionality supports the singleaward
year use of the Perkins MPN through the Tracking and Funds
Management modules.
January 2005 Financial Aid Release 7.0
Confidential Release Guide 349