Stafford Master Promissory Note
Also known as an MPN, the Master Promissory Note is used by all schools and borrowers participating in the federal loan program to simplify and streamline the loan application process for students.
The MPN also includes important language about rights and responsibilities as a borrower and applies to both subsidized and unsubsidized Stafford Loans. Your MPN agreement is only necessary for your first year borrowing and is good for ten years. For subsequent loans, the turnaround time for disbursement of your funds each year will be faster!
How To Complete Your Master Promissory Note
When you accept all or part of the loan offered in your financial aid award package your school will send your loan request to a state guarantee agency for approval. Today most MPNs are digitally signed online at StudentLoans.gov. Reminder: You will need your FAFSA PIN in order to sign! To request a duplicate PIN, visit PIN.ed.gov.
Below is a helpful tutorial on signing your MPN, from the financial aid office at Indiana State University:
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In addition to signing your Master Promissory Note, first-time borrowers will be scheduled for an entrance counseling interview when starting school. Before commencement, you'll participate in an exit counseling interview where you will review your repayment, deferment, and forgiveness options. Learn more about these "interviews" in the loan counseling guide.
After ten years, the master promissory note will automatically expire after the date it is signed or received by your lender. However, there are other reasons why your MPN might be cancelled before the ten-year expiration date. These may include:
- No disbursements are made within twelve months of the date you signed the master promissory note
- You decide not to receive any more loans with that lender. If you choose this option, it is your responsibility to tell your lender
- You are forced to file for bankruptcy