Student seeking federal aid will need to complete a Master Promissory Note (MPN) in order to receive the funds to put toward post-secondary education in order to advance their careers.
Yet, there are many students who do not know what a Master Promissory Note FAFSA document is. Understanding all aspects of the loan, as well as what signing the note means will help students maintain a better grasp on their finances during their education.
There are different types of FAFSA Promissory Note documents that are offered to students, depending on which loan they are granted. For example, an MPN for subsidized or unsubsidized loans will differ from the PLUS MPN for graduate students. Knowing what the MPN is and how it should be retained for students is a critical component of applying for loans. To find out more about MPN options, continue reading below.
The Master Promissory Note is a legal document that a student will sign that promises he or she is responsible for repaying his or her student loan as well as any other interest or fees accrued. This FAFSA MPN will promise payment to the United States Department of Education. The promissory note for FAFSA will detail important information about the terms and conditions of the loan in which a student accepts. Students will also be informed through this legal document how interest is calculated, the different repayment plans available, deferment and cancellation, as well as when interest is charged on the loan.
Related Article: FAFSA Application Process
A student may be eligible through his or her school to borrow additional direct loans as necessary on a single MPN for up to 10 years. Each school will have a different set of loans in which a student is allowed to receive on one MPN. Students should be advised that some schools may not allow more than one student loan under the same MPN. Before signing an MPN, a student should understand his or her school’s financial aid policies.
A FAFSA MPN can be offered in different ways, depending on which loan a student applies and is accepted for. There are three types of Master Promissory Note options for students:
The MPN for Subsidized/Unsubsidized Loans is to be used by undergraduate, graduate or professional students who are receiving direct subsidized or unsubsidized loans. Students must login to the Federal Student Aid (FSA) website with their ID in order to access and sign Master Promissory note documents to receive aid.
The PLUS MPN for Graduate/Professional Students is available for graduate or professional students requesting a PLUS loan. A Parent Loan for Undergraduate Students (PLUS) is a loan offered to parents for students who are enrolled at least half of the time, or graduate and professional students.
The PLUS MPN for Parents is a FAFSA promissory note that is provided to parents who have dependent undergraduate children.
Students can access their Master Promissory Note documents online through the Federal Student Aid website. However, it is important that before a student signs in with his or her FSA ID, he or she understands what information is required for the direct loan Master Promissory Note. For the MPN for FAFSA, a student will need to provide the following information:
A FAFSA MPN must be signed before a student can receive her or her loan funding. For students who are taking out Direct Loan funding, a promissory note for FAFSA must be signed one each of the following conditions:
Students will need to present a signed MPN document to their financial aid office in order for funds to be released. Student loans Master Promissory Note documents that are unsigned will not be granted federal student aid loan disbursement.
A Master Promissory note FAFSA PDF can be accessed online through the Federal Student Aid webpage or through the financial aid department at a student’s school. In addition, a student can also access his or her MPN FAFSA documents online as long as he or she has a verified Federal Student Aid ID. The financial aid office at a student’s school will be able to guide each student through the process of signing and completing the MPN. Student who sign the paper FAFSA MPN will need to visit the financial aid office to turn in the documents in person. Completing the FAFSA MPN online will require the FSA ID as well as any parental information that may be required for dependent students. The entire process for completing the MPN should take approximately 30 minutes, and students will need to complete the form in one single session. Students cannot save their progress online and access the documents again later on. In such cases, an entirely new MPN will need to be completed. For additional assistance, students can contact their school’s financial aid office directly.
After a Master Promissory Note is signed and submitted, the school’s financial aid office will be notified that all accompanying documents have been completed. If any further information is needed after the MPN for FAFSA is submitted, the student will be contacted by the school. Before a federal loan is disbursed to the student, he or she will receive a disclosure statement with an overview of the loan and repayment options. Students will also have the option to log in to their Federal Student Aid account to view any submitted MPN information online.
Related Article: FAFSA Student Aid Report (SAR)