Master promissory note.
In plain English
A master promissory note, often shortened to MPN, is the binding agreement in which you promise to repay your federal student loans plus all interest and fees. It lays out the terms and conditions of your loans and your rights and responsibilities as a borrower. The word master means it can cover multiple loans over time: one MPN can serve for loans across several years at the same school, so you usually do not sign a new one every year. You complete it once on studentaid.gov, and it stays in effect for up to 10 years as long as you keep borrowing under it.
01Why it matters
Signing the MPN is the moment a loan offer becomes a legal debt you owe, so it is worth reading the terms before you click. Because one note can cover years of borrowing, the promises you agree to up front apply to loans you have not even taken out yet.
02The math, step by step
Before your first federal loan pays out, you log in to studentaid.gov and sign your MPN electronically. The note spells out that you will repay what you borrow plus interest, and it covers the loans you take across your time at that school. When you borrow again next year, you usually do not sign a new MPN, because the original one still covers you.
03What this is NOT
An MPN is not the FAFSA. The FAFSA is the application that decides what aid you are offered. The MPN is the separate contract you sign afterward, agreeing to repay the loans you accept. Filing the FAFSA does not obligate you to borrow; signing the MPN does.
04Receipts
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Plain-English answers from our glossary. Receipts included. Never advice.
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