IMPORTANT: If you have never before received a Direct Loan or Direct PLUS Loan, you are required to complete a new promissory note, even if you have already signed a previous promissory note that is still valid for other/previous lending programs.
A promissory note is a legally binding contract between the borrower of a Direct Loan and the lender – the U.S. Department of Education. It contains the terms and conditions of the loan and explains how and when it should be repaid. Before you receive your loan funds, you must sign a promissory note. In the past years, borrowers completed a separate promissory note for each new loan borrowed. Now, in most cases, a borrower will sign only one promissory note that is used for all of the borrower’s Direct Loans. This new note is called a Master Promissory Note (MPN). Please note that if you borrow both Direct, Direct PLUS Loans or Perkins Loans, you will be required to complete and sign a separate Master Promissory Note for each loan type.
When you sign the MPN, you are confirming your understanding that your school may make multiple loans for the same loan type for you for the duration of your education (up to ten years) without you having to sign another promissory note. You are also agreeing to repay your lender, the U.S. Department of Education, all loans made to you under the terms of the MPN. Therefore, it is very important that you completely read and understand all of the information on the MPN before you sign it.
Although your signature on the MPN allows your school to make multiple loans for the same loan type to you under a single promissory note, your school must have a process for confirming whether or not you want these loans. The confirmation process helps to ensure your control over borrowing multiple loans made under an MPN. Your school will inform you of the confirmation process it uses. In addition, you have the right to “close” an MPN so that it cannot be used for additional loans. To do this you must send written notification to your school and to the Direct Loan Servicing Center at 1-800-848-0979.
Borrowers are also required to complete Direct Loan Entrance Counseling. Once completed, both your MPN and Entrance Counseling will be valid for the duration of your education here at NMSU or for a period of 10 years.
You need to gather your personal information, as well as the personal information for two references. You will need your Federal Student Aid PIN in order to sign electronically. You can apply for or reset your PIN on the Federal Student Aid PIN website.
Who is eligible to E-Sign their Federal Direct Stafford Loan Master Promissory Note?
- You have been awarded a Federal Direct Stafford loan by the Financial Aid Office.
- You have accepted the loan online. If not, visit my.nmsu.edu.
- You have completed your Entrance Counseling session.
If you can answer “yes” to all the questions above, you are eligible to complete your Master Promissory Note on-line. You will need your Federal Pin number that is used to complete the FAFSA, in order to complete the Master Promissory Note.