A Master Promissory Note (MPN) is a legal contract that explains the terms and conditions of your loan or loans. You must sign it, promising you will repay your loan or loans, plus interest and fees, to the lender.
The MPN is a legally binding document. If you break your signed promise and don’t repay your student loans, the lender may sue you or even garnish your wages.
Reminder: Student loan debt is difficult to discharge during bankruptcy, so do your best to borrow what you’ll be able to reasonably repay.
Keep reading to learn what you’re agreeing to in a Master Promissory Note, the differences between a promissory note and an MPN, and how to fill out an MPN.
A Master Promissory Note (MPN) is a legal document that details what student loans you’re receiving and the terms.
Your MPN details how much you’re borrowing, any interest, potential fees, repayment requirements, and how to cancel or adjust those loans. You will likely fill out your contact info, including your driver’s license number and permanent mailing address.
You must sign your name, promising to repay the loan amount, accrued interest, and fees. You may also have to promise to spend the loan money on certain education expenses and not on food or other unrelated expenses.
If you ever have any questions in the future about loan repayment or other terms of your student loans, it’s best to look back at your MPN.
There are multiple types of MPNs you may need to sign:
Typically, you have to fill out a Master Promissory Note after being accepted to a college, after filling out the FAFSA, and before you begin attending.
Do I have to fill out a Master Promissory Note every year? In many cases, you only have to fill out one Master Promissory Note for every 10 years of education. However, there are many unique situations when you may have to fill out a new MPN:
A regular promissory note is a legally binding contract in which you agree on loan terms with your lender. In most forms of money lending, each new loan requires a new promissory note.
A Master Promissory Note is also a legally binding contract but holds more weight than a standard promissory note. Signing one MPN lets you borrow multiple student loans over many years (up to 10 years for Federal Direct Loans).
Most people electronically sign an online Master Promissory Note. After you fill out your FAFSA, your school of choice will send you a financial aid award letter. After you accept it, your school should send you an MPN to complete.
You have to complete the MPN in one session. It takes approximately 30 minutes to read and complete.
You may sign a paper version of the MPN (through your school’s financial aid office) or sign a digital MPN on the U.S. government’s secure website. Log into studentaid.gov with your Federal Student Aid ID (FSA ID) and go to the MPN page for undergrad students, graduate and professional students, or parents.
Before signing the Master Promissory Note, double-check that you understand all of the conditions and terms associated with your student loans. After reading and understanding the MPN, finish filling out the Note by signing your electronic signature.
On your Master Promissory Note, you need to provide the contact information for two references who have known you for at least 3 years. These references cannot live at the same address as each other.
The references you provide are not cosigning your loans or providing a character reference. This means they are not legally obligated to repay your debt if you default on your student loan payments. You’re only providing their names and contact information so that the student loan lender(s) can locate you if your contact information changes.
If you move without telling your lender, the loan lender or collections agency will contact your references to try and “skip-trace” you. The lender wants to ensure you’re getting their student loan bills.
