Fast facts about the Federal Stafford Loan Master Promissory Note (MPN).What it is. The Federal Stafford Loan Master Promissory Note (MPN) is a legal agreement between the student borrower and lender. It serves as a multi-year, multi-loan note (a promise to pay) for up to 10 years.
What it does. By signing the MPN, you authorize multiple Stafford Loans to be made under the original note, meaning that you may not have to sign another one for up to 10 years. However, if you change lenders, you are required to sign a new MPN.
How it works. When you accept your Stafford award, loan proceeds are sent directly to your school. The school first credits your account to pay for tuition, fees, room and board, and other applicable charges. You'll receive a disclosure statement before the first disbursement of each Stafford Loan.
Why it's good. With a low interest rate, flexible repayment options, money-saving opportunities, and industry-leading customer service, a Federal Stafford Loan from Nellie Mae is a low-cost, convenient way to cover your education expenses.
Download Sallie Mae's Student Credit Counselor (PDF, 310KB), a free guide that helps college students manage their credit.
