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 most cases, a borrower will sign only one promissory note that is used for all of the borrower’s Direct Loans. This note is called a Master Promissory Note (MPN). Please be aware that if you borrow both Direct and Direct PLUS Loans you will be required to complete and sign a separate Master Promissory Note for each loan type.

By signing the MPN, you acknowledge an understanding that your school can issue multiple loans of the same type for you throughout the duration of your education (up to ten years) without requiring you to sign a new promissory note each time. 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 read it thoroughly 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 one MPN. NMSU 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 NMSU and to the Direct Loan Servicing Center at 1-800-848-0979.

You need to gather your personal information, as well as the personal information for two references. You will need your Federal Student Aid ID in order to sign electronically and select the MPN type.

Sign the Master Promissory Note (MPN)

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.

Loan Entrance Counseling

If you have not previously received a Direct Loan or Federal Family Education Loan (FFEL), the Federal Government requires you to complete Entrance Counseling to ensure that you understand the responsibilities and obligations you are assuming as a loan borrower.