On March 30, 2010, President Obama signed the Health Care Education and Affordability Reconciliation Act of 2010 (“HCEARA”-H.R. 4872) into law. This bill makes significant changes to the way every school in the country processes federal loans. HCEARA eliminates the Federal Family Education Loan Program (FFELP) and mandates that beginning July 1, 2010 all Federal Student Loans will be processed under the Federal Direct Loan Program (DL).
In light of this new legislation, the Monterey Institute, which currently originates loans through the soon-to-be eliminated FFEL program, will begin processing all Federal Student loans under the Federal Direct Loan program.
Any student applying for financial aid for the Summer 2010 semester and beyond will be required to sign a Direct Stafford Loan Master Promissory Note before any future loan funds can be disbursed to them. You can do this online by going to www.StudentLoans.gov.
NOTE: -You will need the same PIN that you used to complete your FAFSA in order to electronically sign the Direct Loan Master Promissory Note.
-If you are a first time borrower, you will also have to complete the Stafford Loan Entrance Interview.
-When signing the MPN online, select California as the State and Middlebury College – Monterey Institute as the school.
- If you have been awarded Grad PLUS Loan eligibility, you will need to complete a new Grad PLUS MPN on this website as well
-HCEARA only affects Federal Loans (i.e. Stafford and Grad PLUS Loans). Private loans are not affected by this new law.
We encourage you to complete the new Direct Loan MPN ASAP to avoid any delays to your Summer or Fall loans.