In order to accept your financial aid package you will have to sign a Master Promissory Note (MPN), a legally binding document, which says you promise to pay the U.S. Department of Education (ED) for all loan amounts paid out (disbursed) under the terms of your MPN. After you sign and submit the MPN, your school's financial aid office will be notified of its completion and will contact you if further action is needed. Before loans are disbursed, you will receive a disclosure statement from the ED or your school.
Multi-Year Feature of the MPN
Most schools do not want to require you to sign a new MPN each academic year, so they will participate in the multi-year feature of the MPN. The multi-year feature of the MPN means that you may receive more than one (1) loan under the MPN over a period of up to ten (10) years to pay for your educational costs.
If your school is not authorized to use the multi-year feature of the MPN or chooses not to do so, or if you do not want to receive more than one (1) loan under your MPN, you must sign a new MPN for each loan that you receive.
NOTE: If you do not want to receive more than one (1) loan under your MPN, you must notify your school or your servicer in writing.
Morgan Rush is a California journalist specializing in news, business writing, fitness and travel. He's written for numerous publications at the national, state and local level, including newspapers, magazines and websites. Rush holds a Bachelor of Arts from the University of California, San Diego.