The Master Promissory Note (MPN)

When students or parents take out a federal Stafford, PLUS, Grad PLUS or Perkins loan, they will be asked to sign a Master Promissory Note, or MPN, which is a written contract between the borrower and the lender. There are separate MPNs for Stafford, Perkins and PLUS/Grad PLUS loans.

Colleges may use the MPN as either an annual (single-year) note or a serial (multi-year) note. As an annual note, borrowers must complete a new MPN for each new loan they receive. When used as a serial note, borrowers complete an MPN the first time they borrow—generally, all subsequent loans for up to 10 years will be disbursed through the original MPN. Borrowers must complete a new MPN if they change lenders, and they may have to complete a new MPN if they transfer to a different college.

One of the ways borrowers may e-sign their loans online is by using their PIN, or personal identification number. Borrowers should check with their lender and college to see if they offer this option.

Even though borrowers may not have to sign a promissory note each year, colleges are still required to implement steps to ensure borrowers have the opportunity to accept or decline loan funds at "control points." At these points, borrowers may accept the loan amount, change the loan amount or refuse the loan.