Get fast facts about the ParentPLUS Loan Master Promissory Note (MPN).
What it is.
The ParentPLUS Loan Application and Master Promissory Note (MPN) is a legal agreement between the parent borrower and lender. It is a multi-year, multi-loan promise to pay for each dependent student.
What it does.
By signing the MPN, you authorize multiple PLUS Loans to be made under the original note, meaning that you may not have to sign another one for up to 10 years. If you change lenders, you will be required to sign a new MPN. If you have more than one child in school, you'll need to sign more than one MPN. Parent borrowers applying with an endorser (or co-borrower) can use the PLUS MPN, but it will be valid for only one year.
How it works.
Approval is based on creditworthiness, so you must re-apply with your lender for a ParentPLUS Loan each year to determine eligibility. Once you are credit-approved, the lender transmits the loan information—including amount—to the school through its preferred electronic process. You'll receive a disclosure statement before the first disbursement of each ParentPLUS Loan.
Why it's good.
With a fixed interest rate, flexible repayment options, money-saving opportunities, and industry-leading customer service, a ParentPLUS Loan from Nellie Mae is a low-cost, convenient way to cover your child's education expenses.
