Fsa Direct Loans Master Promissory Note?

A domestic student asks Mount Holyoke College Student Financial Services: What is a Master Promissory Note for domestic students?

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Direct Student Loans – Direct Loan Program

(FAFSA), for all FSA programs, including Direct Loans. (We encourage using FAFSA on the Web , the online version of the application, because of its advantages.) The student's prospective school will draft an aid package, which might include a Direct Loan. If the student decides to accept the loan, he or she must sign a loan agreement called a master promissory note (MPN), which, depending on the school, the student might be able to complete electronically. The financial aid office at the school can say how much a student can borrow. Direct Loans are not sold. Since borrowing is directly through the federal government, borrowers make loan payments to the Department of Education for the life of their loans. It's "one-stop-shopping" from loan application through repayment. Borrowers have flexible repayment options , and they can change options when they need to without a fee at any time during the life of the loan.

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