Master Promissory Note - the MPNThe Master Promissory Note is required to receive a Stafford Loan. It's important to know that in order to receive a Stafford Loan, a student must complete a Free Application for Federal Student Aid (FAFSA) and a Master Promissory Note (MPN). Depending on the lending program, a student may obtain an MPN from a school, a lender, a guaranty agency, or the Direct Loan Program. In the traditional paper process, the MPN might be completed at the school by the student and submitted to the lender. In other cases, the school certifies the loan based on the student’s acceptance of the aid package and sends the MPN to the student for their signature. Regardless of the method used, the Borrowers’ Rights and Responsibilities statement must be provided to the borrower with the MPN. Schools now also have the option of having students complete and sign an electronic promissory note. In most cases, the promissory note will be completed through a Web site, and the organization operating the site will be responsible for authenticating the student’s electronic signature. In the Direct Loan program, you can specify to the Loan Origination Center whether you want the Center to accept electronic promissory notes for your school, and whether you want the Center to only accept promissory notes for students who have an origination record from your school.
|
