Department Issues New Consolidation-Loan MPN Addendum

The U.S. Department of Education issued a revised addendum to the Federal Consolidation Loan Application and Promissory Note.

In Dear Colleague Letter FP-06-12, the Department notes that the language of the new addendum reflects changes to the Federal Family Education Loan Program as a result of the Emergency Supplemental Appropriations Act. That act, which President Bush signed into law June 15, 2006, included elimination of the single-holder rule.

The new addendum includes a revised explanation of the new identify-theft discharge, which was effective July 1, 2006. The revised explanation clarifies that only the portion of a Consolidation loan that includes loans eligible for this discharge may be discharged under this provision.

Lenders now must use this new version of the addendum.

You will need Adobe Acrobat Reader to access the letter and addendum.