What is the Master Promissory Note?
The Master Promissory Note (MPN), the legal contract requiring borrowers to repay the loan, is similar to a line of credit that allows students to borrow up to the annual and aggregate limits specified in the loan program. The MPN is valid for up to 10 years from the date you sign it, provided the first disbursement of this loan is made within twelve months of the signature. If you were awarded both a Federal Direct Loan and a Federal Perkins Loan, you will be required to complete a MPN for each loan program.
It is a legal document between a student and a lender giving the school, government and lender authorization to process and disburse a student loan each academic year. It is valid for 10 years only with the lender that appears on the form chosen by the student. It explains the rights and responsibilities associated with a student loan.You do not need to complete a new Master Promissory Note (MPN) each academic year, unless you wish to change lenders.
Related Questions
- I have completed the Federal Direct Stafford Master Promissory Note (MPN). How do I request the dollar amount I want to borrow for the Federal Direct Subsidized and Unsubsidized Stafford Loans?
- Do I have to sign a Master Promissory Note (MPN) and complete an Entrance Counseling Session every year for the Federal loan programs?
- What is a Master Promissory Note and Entrance Counseling?
