What is a Master Promissory Note?

The Master Promissory Note (MPN) is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s); for instance, it will include information on how interest is calculated, when interest is charged, available repayment plans, and deferment, and cancellation provisions. 

Unless your school does not allow more than one loan to be made under the same MPN or you obtain an endorser when borrowing a Direct PLUS, you can take out additional Direct Loans on a single MPN for up to 10 years.

It’s important to understand that when you sign an MPN you’re promising to repay all loans that are made under that MPN. As stated on the MPN, you must repay your loan even if:

  • you don’t complete your education,
  • you can’t get a job after you leave school, and/or
  • you didn’t like the education you received.

Before—or at the time of—the first disbursment (payment to you or on your behalf) of your loan(s), you'll receive a disclosure statement that gives information about any loan that the school plans to disburse under your MPN, including the loan amount, fees, and the expected disbursement dates and amounts.

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Article ID: 21315
Thu 12/8/16 10:42 AM
Thu 10/26/23 7:43 PM