What is a Master Promissory Note (MPN)?
A promissory note or a Master Promissory Note is a contract to repay a loan. It is set up for a specific period of time. A student may have a parent or cosigner join in the agreement and share in the financial responsibility. Our MPN process may allow you to receive additional loans, cancel and change loan amounts under the same note, instead of completing a new one. This is called a Serial Loan note. The MPN is signed by the borrower and is valid for 10 years from the date the borrower signs it. You will be notified in writing whenever there is a change to your loan amount. A borrower may cancel the MPN by sending a written request to the lender requesting the MPN no longer be used. If no loan is given within 12 months from the date the MPN was signed and the MPN expires, the MPN becomes invalid.
The MPN is a promissory note that can be used to make one or more loans for one or more academic years (up to 10 years). There are two types of MPNs in the Direct Loan Program: one for student loans, and one for parent PLUS loans. If you are a student borrower under the Direct Loan Program attending a school that is authorized and chooses to make multiple loans under the same MPN for more than one academic year, you will only sign one MPN for student loans. It will be used for all of your Direct Subsidized Loans and Direct Unsubsidized Loans over multiple academic years. For example, if you enroll in college as a freshman and borrow under the Direct Loan Program for all years of study, you may be able to borrow under this one MPN for all years. If you are a parent borrower under the Direct Loan Program whose child is attending a school that is authorized and chooses to make multiple loans under the same MPN for more than one academic year, you will only sign one MPN for parent PLUS loa
A master promissory note (MPN) is a legally binding contract between the borrower and the lender. When this contract is signed the borrower is agreeing to repay the loan money borrowed. The terms of the MPN describe the borrowers rights and responsibilities, as well as the terms and conditions associated with the loan. Signing the MPN also implies that the borrower accepts these terms and conditions. Once signed the MPN is valid for ten (10) years before it automatically expires. All loan programs require an MPN. A pin (personal identification number) is required to complete an mpn. This may be obtained from the USDE via their website, www.pin.ed.gov. A student will need this for a Stafford and/or Perkins Loan. A parent will need this for a PLUS loan.
The Master Promissory Note (MPN) is a contract students sign when Stafford loans are processed. It is a binding legal document that indicates commitment to repay student loan(s). The note includes important information regarding the rights and responsibilities of the borrower. The MPN can be used as a multi-year note, meaning the student may receive multiple loans for multiple years by signing only one MPN. A MPN is good for 10 years from the date the loan is signed. A MPN may be used for any loan period that begins within the 10-year time frame, providing the first loan is disbursed within 12 months after signing the note. The MPN should make the borrowing process easier for borrowers and schools alike.
