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Direct Loan MPN Frequently Asked Questions
Q. What is the Master Promissory Note and how does it work?
A. A promissory note is what a borrower signs as a promise to repay a loan. A Master Promissory Note (MPN) is used to make one or more loans to the same borrower over one or more academic years. Your award notification and the loan Disclosure Statement from the Direct Loan Program indicate the amounts of the individual loans you are taking under the MPN. This allows you to sign only one MPN while you are enrolled. (There is a ten year limit on the life of the note.)
Q. What am I agreeing to when I sign a MPN?
A. You are agreeing to repay the U.S. Department of Education all loans made to you under the terms of the MPN and that you understand that multiple loans may be made to you under this same MPN.
Q. What types of loans does the MPN cover?
A. The MPN covers all Federal Direct Loans - Subsidized, Unsubsidized, and PLUS (Parent Loans).
Q. Since the MPN does not show the subsidized and/or unsubsidized loan or PLUS amounts or the loan period that I am agreeing to borrow, how do I know what that is?
A. Because the MPN covers current and future loans, individual loan information cannot be displayed. Only the loan amounts you approve on your award letter acceptance form or subsequent requests are processed.
Additionally, you will receive a Disclosure Statement from the Federal Direct Loan Program for each new loan. This statement provides comprehesive information about the loan type, the amount, loan period and expected disbursements.
It is important that you keep all of the Disclosure Statements you receive.
Q. What if I am having problems accessing the MPN web site?
A. The site is unavailable every Sunday morning from 5 A.M. until 11 A.M. (ET) and every Monday morning from 12 A.M. until 7 A.M. (ET) while routine maintenance is performed. The main page of the MPN web site informs you of any other maintenance downtime they have scheduled. If you think it might be a problem with your computer with either your connection or browser, you can find technical help at site assistance.
Q. What if I am transferring to Hope from another school where I had loans?
A. If you had prior Federal Direct Loans and have a valid MPN on record with the federal loan origination center, you should not have to sign another one here.
Q. How long does it take to complete the MPN? And what information do I need?
A. The MPN requires 10 steps and takes about 30 minutes to complete. Click here to see the details.
Q. It states that I will need to have my Department of Education FSA ID. What if I don't have one?
A. If you do not have an FSA ID, you can request one from the official FSA ID web site. All information about the PIN is located on the site including FSA ID FAQ'S. Having problems with your FSA ID? Check here.
Q. Do I need to complete all of the MPN at one time? Or if I get through some of the steps, can I return later to finish it?
A.Yes, you do need to complete the entire 10 step electronic MPN process in a single session. If you exit before you submit your signed MPN and return later, you will have to start over from the beginning of the process.
Q. What if my grade level changes - if I move from freshman to sophomore status after the fall semester? How do I request additional subsidized or unsubsidized funds?
A. You can notify the Office of Financial Aid and request additional loan funds based on the higher grade level. You will not need to sign another MPN for the increased amount. The Office of Financial Aid will send you a revised award notification so you know that the loan request has been processed. The loan will then credit your student account. The same is true for additional PLUS requests.
Q. What if I signed my MPN and lost my copy?
A. You can retrieve and print another copy by clicking here.
Q. I still have questions - where else can I find answers.
A. You can call or email The Office of Financial Aid directly.