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A Master Promissory Note (MPN) is a Stafford Loan promissory note that is the student borrower's
promise to repay the loan funds.
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An MPN is not a student loan application—it is only a promissory note. The application
and school certification processes are separate. The Free Application for Federal Student Aid
(FAFSA) is the application, along with any additional paper or electronic financial aid application
required by the school.
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The school will certify student loan eligibility directly to the student's lender or guarantor.
The student also receives notification of their eligibility directly from the school. This is
usually sent in the award letter.
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In order to receive a Stafford Loan, the student must sign at least one promissory note.
The promissory note must be forwarded to the student borrower's lender and subsequently approved
before any disbursements can be made.
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The student borrower will receive notification that the loan has been made from the guarantee
agency (KHEAA) and the lender. KHEAA notifies the student borrower of the amount of the loan
and the scheduled disbursement dates at the time the loan is guaranteed. A disclosure statement
will be sent from the lender to the student borrower at the time (or before) loan funds are
sent to the school.
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Some schools require a positive confirmation before disbursements made under an MPN can be
released. If your school requires confirmation, you will be notified of any special requirements.
Borrowers should carefully read all information sent to them. Failure to follow school procedures
may delay receipt of student loan funds.
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Funds are released to the school via electronic fund transfer (EFT) or check. The school
will confirm eligibility and credit the student's account and/or disburse funds directly to
the student after receipt of the funds.
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To cancel or reduce the amount of the loan, the student should contact the school or lender.
Students have up to 120 days after disbursement to return funds without penalty.
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An MPN may be used as a serial (multi-year) note. If used in this capacity, the borrower
signs only one note as long as he or she is attending a school using the MPN as a serial note.
A new note is not required for subsequent loans unless the lender or borrower has revoked the
MPN or the borrower chooses a new lender.
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If the school uses the MPN as an annual note, a new promissory note will be required each
subsequent year.
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An MPN is good for up to ten years. If the first disbursement is not made within 12 months
of the student's signature date, the MPN is cancelled and another MPN must be signed.
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A borrower may revoke his or her MPN at any time through a written request to the lender.
