**Guidelines for Paper Master Promissory Notes June 2005**

The following document presents a summary of acceptance guidelines for
master promissory notes (MPNs) received by the Department of Education
(the Department). We hope this information will help make MPN processing
a more efficient practice by allowing you to prevent errors before
mailing MPNs to the Department and to minimize the number of rejected
MPNs to correct.

All paper MPNs are processed in Montgomery, AL. There are two separate
mailing addresses, depending on how you choose to send the MPNs. You
will see that the overnight mail address is new; you should update your
school's system accordingly. Please use the correct address to ensure a
timely receipt of the manifests by the processing center.

  ---------------------------------- ------------------------------------
  **Overnight, Express or Certified  **Regular Mail:**
  Mail**                             

  Department of Education            Department of Education

  201 TechnaCenter Drive             P.O. Box 5692

  Montgomery, AL 36117\*             Montgomery, AL 36104\*
  ---------------------------------- ------------------------------------

\*Note the difference in the zip codes. This is not an error; the post
office in Montgomery uses a different zip code for the P.O. Box.

**What should be done to reduce the number of processing errors?**

-   Data from MPN must match the same data in the borrower record (SSN,
    the borrower\'s date of birth, and the first two characters of the
    borrower\'s first name) or the MPN will not link to an award. Please
    make sure the MPN information matches the data submitted on the
    award.

    -   In cases where any of this data is legally altered on the MPN,
        but the altered data does not match the borrower record, the MPN
        will not link. You can prevent errors by ensuring that altered
        data on the MPN is researched and verified against the award
        data in the system prior to submitting the MPN for processing.

-   The processing center uses a double data entry and verification
    process to minimize data entry errors. The double data entry process
    allows us to validate the data from the MPN twice before the data is
    released for linking to an award. As a result, we have reduced the
    miskey error rate to .08% of all MPNs keyed.

-   Hand-written data on MPNs also increases error rates. To ensure that
    hand-written MPNs are processed correctly, please make certain that
    hand-written data on the MPN is legible.

-   All pre-printed legal text and borrower-entered information should
    be readable by the processing team and should not be obstructed by a
    school stamp or date stamp.  The use of highlighters on any critical
    information on the MPN impedes the scanning process and should be
    avoided.

-   When using the downloadable version of an MPN, please ensure that
    the legal text is printed on the reverse of the MPN.

If a paper MPN cannot be processed due to invalid alteration or other
error, it will be returned to you to correct or to obtain a new MPN. The
shipping manifest is annotated to reflect the reason it was returned to
you (for example, no signature or missing shipping manifest). You will
receive any returned notes before receiving the original shipping
manifest.

If you have any questions regarding the MPN process, please contact the
COD School Relations Center at 800/848-0978 or e-mail
<CODSupport@acs-inc.com>. Thank you for your ongoing partnership in the
Direct Loan Program.

Direct Subsidized and Direct Unsubsidized MPN Review/Acceptance
Guidelines

+--------------+----------------------+----------------------+--------+
| **Section A: |                      |                      |        |
| BORROWER     |                      |                      |        |
| I            |                      |                      |        |
| NFORMATION** |                      |                      |        |
+--------------+----------------------+----------------------+--------+
| **Form       | **Valid Values**     | **Alterations?**     | *      |
| Label**      |                      |                      | *Requi |
|              |                      |                      | red?** |
+--------------+----------------------+----------------------+--------+
| 1\. Driver's | May be left blank.   | Yes, with initials   | No     |
| License      | If either license    |                      |        |
| State and    | number or state is   |                      |        |
| No.          | present, both must   |                      |        |
|              | be on the MPN        |                      |        |
+--------------+----------------------+----------------------+--------+
| 2\. Social   | Student borrower's   | Yes, with initials   | Yes    |
| Security No. | social security      |                      |        |
|              | number               |                      |        |
+--------------+----------------------+----------------------+--------+
| 3\. E-mail   | Student borrower's   | Yes                  | No     |
| Address      | current e-mail       |                      |        |
|              | address; may be      |                      |        |
|              | blank                |                      |        |
+--------------+----------------------+----------------------+--------+
| 4\. Name and | Must have first and  | Yes, with initials   | Yes    |
| Address      | last name; middle    |                      |        |
| (street,     | initial is optional. | Yes                  | No     |
| city, state, | Student borrower's   |                      |        |
| zip code)    | permanent OR local   | Yes                  | Yes    |
|              | street address; may  |                      |        |
|              | be blank.            |                      |        |
|              |                      |                      |        |
|              | Student borrower's   |                      |        |
|              | permanent OR local   |                      |        |
|              | city, state, and zip |                      |        |
|              | code; must have      |                      |        |
|              | city, state and zip  |                      |        |
|              | code. If foreign     |                      |        |
|              | country, zip code    |                      |        |
|              | must be blank        |                      |        |
+--------------+----------------------+----------------------+--------+
| 5\. Date of  | Student borrower's   | Yes, with initials   | Yes    |
| Birth        | date of birth,       |                      |        |
|              | MM/DD/YYY format     |                      |        |
+--------------+----------------------+----------------------+--------+
| 6\. Area     | Student borrower's   | Yes                  | No     |
| Co           | permanent 10-digit   |                      |        |
| de/Telephone | telephone number     |                      |        |
| No.          |                      |                      |        |
+--------------+----------------------+----------------------+--------+
| 7\.          | 2 references --      | Yes                  | No     |
| References   | name, address, phone |                      |        |
|              | number, relationship |                      |        |
|              | to the borrower      |                      |        |
+--------------+----------------------+----------------------+--------+
| 16/17.       | Signature should     | No alterations are   | Yes    |
| Borrower's   | match the name in    | permitted on the     |        |
| Signature    | item #4, with the    | borrower's           |        |
| and Today's  | following            | signature. Signature |        |
| Date         | exceptions: middle   | must be in blue or   |        |
|              | initial may be       | black ink.           |        |
|              | omitted in the       |                      |        |
|              | signature and an     | Disabled borrowers   |        |
|              | obvious derivative   | may show their       |        |
|              | of the first or      | symbol, including    |        |
|              | middle name may be   | "X", for a           |        |
|              | used (i.e.,          | signature.           |        |
|              | William=Bill;        |                      |        |
|              | Richard=Dick)        | However, we request  |        |
|              |                      | that the school      |        |
|              |                      | official provide a   |        |
|              |                      | statement on school  |        |
|              |                      | letterhead           |        |
|              |                      | indicating the       |        |
|              |                      | symbol is the        |        |
|              |                      | signature of the     |        |
|              |                      | borrower.            |        |
|              |                      |                      |        |
|              |                      | Date may be altered  |        |
|              |                      | or blank.            |        |
+--------------+----------------------+----------------------+--------+
| **Section B: |                      |                      |        |
| SCHOOL       |                      |                      |        |
| I            |                      |                      |        |
| NFORMATION** |                      |                      |        |
+--------------+----------------------+----------------------+--------+
| **Form       | **Valid Values**     | **Alterations?**     | *      |
| Label**      |                      |                      | *Requi |
|              |                      |                      | red?** |
+--------------+----------------------+----------------------+--------+
| 8\. School   | School Name          | Yes, with school     | Yes    |
| Name and     |                      | official's initials  |        |
| Address      | School's Street      |                      | No     |
|              | Address              | Yes, with school     |        |
|              |                      | official's initials  | Yes    |
|              | School's City,       |                      |        |
|              | State, Zip code      | Yes, with school     |        |
|              |                      | official's initials  |        |
+--------------+----------------------+----------------------+--------+
| 9\. School   | Direct Loan School   | Yes                  | Yes    |
| Code/Branch  | Code                 |                      |        |
+--------------+----------------------+----------------------+--------+
| 10\.         | Loan ID of one of    | Yes, with school     | Yes    |
| Id           | the loans associated | official's initials  |        |
| entification | with this MPN. Must  | (only last 2 digits  |        |
| No.          | be a valid           | may be modified)     |        |
|              | xx-character field.  |                      |        |
+--------------+----------------------+----------------------+--------+

Additional Reasons for MPN Rejections:

MPN text or signature is altered.

Legal text is missing.

Signed date on MPN is *after* the expiration date of the form.

Signed MPN is a photocopy (no original signature) or is marked "copy" or
"non-negotiable."

Direct PLUS MPN Review/Acceptance Guidelines

+--------------+---------------------+--------------------+-----------+
| **Section A: |                     |                    |           |
| PARENT       |                     |                    |           |
| I            |                     |                    |           |
| NFORMATION** |                     |                    |           |
+--------------+---------------------+--------------------+-----------+
| **Form       | **Valid Values**    | **Alterations?**   | **Re      |
| Label**      |                     |                    | quired?** |
+--------------+---------------------+--------------------+-----------+
| 1\. Driver's | May be left blank.  | Yes, with initials | No        |
| License      | If either license   |                    |           |
| State and    | number or state is  |                    |           |
| No.          | present, both must  |                    |           |
|              | be on the MPN       |                    |           |
+--------------+---------------------+--------------------+-----------+
| 2\. Social   | Borrower's social   | Yes, with initials | Yes       |
| Security No. | security number     |                    |           |
+--------------+---------------------+--------------------+-----------+
| 3\. Date of  | Borrower's date of  | Yes, with initials | Yes       |
| Birth        | birth, MM/DD/YYYY   |                    |           |
|              | format              |                    |           |
+--------------+---------------------+--------------------+-----------+
| 4\. E-mail   | Borrower's current  | Yes                | No        |
| Address      | e-mail address; may |                    |           |
|              | be blank            |                    |           |
+--------------+---------------------+--------------------+-----------+
| 5\. Name and | Borrower's first    | Yes, with initials | Yes       |
| Address      | and last name;      |                    |           |
| (street,     | middle initial is   | Yes                | No        |
| city, state, | optional.           |                    |           |
| zip code)    |                     | Yes                | Yes       |
|              | Borrower's          |                    |           |
|              | permanent OR local  |                    |           |
|              | street address; may |                    |           |
|              | be blank            |                    |           |
|              |                     |                    |           |
|              | Borrower's          |                    |           |
|              | permanent OR local  |                    |           |
|              | city, state, and    |                    |           |
|              | zip code            |                    |           |
|              |                     |                    |           |
|              | Must have city,     |                    |           |
|              | state and zip code. |                    |           |
|              | If foreign country, |                    |           |
|              | zip code must be    |                    |           |
|              | blank.              |                    |           |
+--------------+---------------------+--------------------+-----------+
| 6\. Home     | Student borrower's  | Yes                | No        |
| Area         | permanent 10-digit  |                    |           |
| Co           | telephone number    |                    |           |
| de/Telephone |                     |                    |           |
| No.          |                     |                    |           |
+--------------+---------------------+--------------------+-----------+
| 7\. U.S.     | Citizenship status  | Yes, with initials | Yes       |
| Citizenship  |                     |                    |           |
| Status       | Alien Registration  |                    | If        |
| (check one)  | Number              |                    | "         |
|              |                     |                    | Permanent |
|              |                     |                    | Resid     |
|              |                     |                    | ent/Other |
|              |                     |                    | Eligible  |
|              |                     |                    | Non       |
|              |                     |                    | -Citizen" |
|              |                     |                    | is        |
|              |                     |                    | selected, |
|              |                     |                    | the Alien |
|              |                     |                    | Reg       |
|              |                     |                    | istration |
|              |                     |                    | No. must  |
|              |                     |                    | be        |
|              |                     |                    | present.  |
|              |                     |                    | If        |
|              |                     |                    | "Neither" |
|              |                     |                    | is        |
|              |                     |                    | selected, |
|              |                     |                    | the MPN   |
|              |                     |                    | will be   |
|              |                     |                    | rejected. |
+--------------+---------------------+--------------------+-----------+
| 8\.          | Borrower's employer | Yes                | No        |
| Employer's   | name and street     |                    |           |
| Name and     | address, including  |                    |           |
| Address      | city, state, and    |                    |           |
|              | zip code            |                    |           |
+--------------+---------------------+--------------------+-----------+
| 9\.          | Borrower's employer | Yes                | No        |
| Employer's   | 10-digit telephone  |                    |           |
| Area         | number              |                    |           |
| Co           |                     |                    |           |
| de/Telephone |                     |                    |           |
| No.          |                     |                    |           |
+--------------+---------------------+--------------------+-----------+
| 10\.         |                     | No                 | No        |
| Endorser     |                     |                    |           |
| checkbox     |                     |                    |           |
+--------------+---------------------+--------------------+-----------+
| 11\.         | 2 references --     | Yes                | No        |
| References   | name, address,      |                    |           |
|              | phone number,       |                    |           |
|              | relationship to the |                    |           |
|              | borrower            |                    |           |
+--------------+---------------------+--------------------+-----------+
| 24/25.       | Signature should    | No alterations are | Yes       |
| Borrower's   | match the name in   | permitted on the   |           |
| Signature    | item #5, with the   | borrower's         |           |
| and\         | following           | signature.         |           |
| Today's Date | exceptions: middle  | Signature must be  |           |
|              | initial may be      | in blue or black   |           |
|              | omitted in the      | ink                |           |
|              | signature and an    |                    |           |
|              | obvious derivative  | Disabled borrowers |           |
|              | of the first or     | may show their     |           |
|              | middle name may be  | symbol, including  |           |
|              | used (i.e.,         | "X", for a         |           |
|              | William=Bill;       | signature.         |           |
|              | Richard=Dick)       |                    |           |
|              |                     | However, we        |           |
|              |                     | request that the   |           |
|              |                     | school official    |           |
|              |                     | provide a          |           |
|              |                     | statement on       |           |
|              |                     | school letterhead  |           |
|              |                     | indicating the     |           |
|              |                     | symbol is the      |           |
|              |                     | signature of the   |           |
|              |                     | borrower.          |           |
|              |                     |                    |           |
|              |                     | Date may be        |           |
|              |                     | altered or blank.  |           |
+--------------+---------------------+--------------------+-----------+
| **Section:   |                     |                    |           |
| SCHOOL       |                     |                    |           |
| I            |                     |                    |           |
| NFORMATION** |                     |                    |           |
+--------------+---------------------+--------------------+-----------+
| **Form       | **Valid Values**    | **Alterations?**   | **Re      |
| Label**      |                     |                    | quired?** |
+--------------+---------------------+--------------------+-----------+
| 12\. School  | School Name         | Yes, with school   | Yes       |
| Name and     |                     | official's         |           |
| Address      | School's Street     | initials           | No        |
|              | Address             |                    |           |
|              |                     | Yes, with school   | Yes       |
|              | School's City,      | official's         |           |
|              | State, Zip code     | initials           |           |
|              |                     |                    |           |
|              |                     | Yes, with school   |           |
|              |                     | official's         |           |
|              |                     | initials           |           |
+--------------+---------------------+--------------------+-----------+
| 13\. School  | Direct Loan School  | Yes                | Yes       |
| Code/Branch  | Code                |                    |           |
+--------------+---------------------+--------------------+-----------+
| 14\.         | Loan ID of one of   | Yes, with school   | Yes       |
| Id           | the loans           | official's         |           |
| entification | associated with     | initials (only     |           |
| No.          | this MPN. Must be a | last 2 digits may  |           |
|              | valid xx-character  | be modified)       |           |
|              | field               |                    |           |
+--------------+---------------------+--------------------+-----------+
| **Section C: |                     |                    |           |
| STUDENT      |                     |                    |           |
| I            |                     |                    |           |
| NFORMATION** |                     |                    |           |
+--------------+---------------------+--------------------+-----------+
| **Form       | **Valid Values**    | **Alterations?**   | **Re      |
| Label**      |                     |                    | quired?** |
+--------------+---------------------+--------------------+-----------+
| 15\.         | Student's last and  | Yes, with initials | Yes       |
| Student's    | first name and      |                    |           |
| Name (last,  | middle initial;     |                    |           |
| first,       | middle initial is   |                    |           |
| middle       | optional.           |                    |           |
| initial)     |                     |                    |           |
+--------------+---------------------+--------------------+-----------+
| 16\. Social  | Student's current   | Yes, with initials | Yes       |
| Security No. | social security     |                    |           |
|              | number              |                    |           |
+--------------+---------------------+--------------------+-----------+
| 17\. Date of | Student's date of   | Yes, with initials | Yes       |
| Birth        | birth; MM/DD/YYYY   |                    |           |
|              | format              |                    |           |
+--------------+---------------------+--------------------+-----------+

Additional Reasons for MPN Rejections:

MPN text or signature is altered.

Legal text is missing.

Signed date on MPN is *after* the expiration date of the form.

Signed MPN is a photocopy (no original signature) or is marked "copy" or
"non-negotiable."