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    This document provides guidance on actions required when direct loan amounts need to be increased or decreased at different stages of the loan origination process. It outlines that for increases before promissory note signing, no new note is needed, but after, a new note must be printed. It also states that after disbursement, a new loan record must be made. For decreases or unchanged amounts, no action is typically required unless the borrower wants a revised note.

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    This document provides guidance on actions required when direct loan amounts need to be increased or decreased at different stages of the loan origination process. It outlines that for increases before promissory note signing, no new note is needed, but after, a new note must be printed. It also states that after disbursement, a new loan record must be made. For decreases or unchanged amounts, no action is typically required unless the borrower wants a revised note.

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    Download as PDF, TXT or read online from Scribd
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    22 views1 page

    Description: Tags: 5-11dl 1

    Uploaded by

    anon-698906
    This document provides guidance on actions required when direct loan amounts need to be increased or decreased at different stages of the loan origination process. It outlines that for increases before promissory note signing, no new note is needed, but after, a new note must be printed. It also states that after disbursement, a new loan record must be made. For decreases or unchanged amounts, no action is typically required unless the borrower wants a revised note.

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    of 1

    DIRECT LOAN SCHOOL GUIDE

    Loan Amount Increases

    Situation Action
    After the loan origination record is created The approved loan amount may be
    and increased without creating a new loan
    record or loan ID.
    Before the promissory note is printed or No action necessary
    requested to be printed
    After the promissory note is printed but Must print a new promissory note
    before it is signed
    After the promissory note is signed but Must print a new promissory note and get it
    before it is sent to the Loan Origination signed.
    Center
    • After the promissory note is sent to the A new loan record and loan ID number
    Loan Origination Center but before loan must be created and a new promissory note
    funds are actually disbursed must be printed (or requested to be printed)
    for either the incremental increase or the
    entire new loan amount. If a new record is
    created for the entire new loan amount, the
    prior loan record must be canceled.
    • After loan funds are disbursed A new loan record and loan ID number
    must be created and a new promissory note
    must be printed (or requested to be
    printed). This is a new loan. There are
    now two loans unless the first loan is
    canceled.

    Loan Amount Decreases/Stays the Same


    Situation Action
    If the approved loan amount decreases or if No action is required unless the borrower
    the approved loan amount stays the same requests a new note that reflects the actual
    but there are other loan record changes amount of the loan. In that case, the school
    would create a new loan record (you must
    cancel the original loan record) and loan ID
    number and print a revised promissory note
    or request that a revised note be printed by
    the Loan Origination Center.

    June 1997 5-11

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