Summary of Changes

Federal Direct PLUS Loan Application and Master Promissory Note

Endorser Addendum to Federal Direct PLUS Loan Application and Master Promissory Note

OMB No. 1845-0068

Changes Resulting from the College Cost Reduction and Access Act of 2007 (CCRAA) and November 1, 2007 Final Regulations (72 FR 61960)

CCRAA Changes:

1. Direct PLUS Loan MPN, Section F, and Endorser Addendum, Section E, “Repayment” section. Added language explaining payment application rules for payments made under the income-based repayment plan. (CCRAA Sec. 203).

2. Direct PLUS Loan MPN and Endorser Addendum, Borrower’s Rights and Responsibilities Statement, Item 15 (Repaying your loan). Added information related to the income contingent repayment plan and the income-based repayment plan. (CCRAA Sec. 203)

3. Direct PLUS Loan MPN and Endorser Addendum, Borrower’s Rights and Responsibilities Statement, Item 20 (Deferment and forbearance). Revised language to reflect changes made to terms and conditions of active duty military deferments (CCRAA Sec. 202). Added language to cover new post-military service deferment (CCRAA Sec. 204).

4. Direct PLUS Loan MPN and Endorser Addendum, Borrower’s Rights and Responsibilities Statement, Item 21 (Discharge). Added language to cover the public service loan forgiveness program. (CCRAA Sec. 401)

Regulatory changes:

1. Direct PLUS Loan MPN and Endorser Addendum, Borrower’s Rights and Responsibilities Statement, Item 13 (Disbursement). Added entrance counseling requirement for graduate and professional student Direct PLUS Loan borrowers. (34 CFR 685.304(a)(2), as amended by the Nov. 1, 2007 final regulations [72 FR 61960].)

2. Direct PLUS Loan MPN and Endorser Addendum, Borrower’s Rights and Responsibilities Statement, Item 14 (Canceling your loan). Revised language for consistency with new regulations. (34 CFR 668.165(a)(4), as amended by the Nov. 1, 2007 final regulations [72 FR 62014].)

3. Direct PLUS Loan MPN and Endorser Addendum, Borrower’s Rights and Responsibilities Statement, Item 20 (Deferment and forbearance). Added language to cover provisions allowing for the borrower’s representative to submit a military deferment request on the borrower’s behalf (34 CFR 685.204(h)(1), as amended by the Nov. 1, 2007 final regulations [72 FR 61960]) and provisions for a simplified deferment process (34 CFR 685.204(h)(2), as amended by the Nov. 1, 2007 final regulations [72 FR 61960]).

4. Direct PLUS Loan MPN and Endorser Addendum, Borrower’s Rights and Responsibilities Statement, Item 21 (Discharge). Revised language based on new regulations related to documentation of a borrower’s death. (34 CFR 685.212(a), as amended by the Nov. 1, 2007 final regulations [72 FR 61960].)