Completing the FAFSA and the MPN
For most student loans, applicants are required to complete a Free Application for Federal Student Aid (FAFSA) and sign a Master Promissory Note (MPN). The FAFSA includes specific financial information, including personal details about the borrower as well as information regarding the borrower's (or the borrower's parents') household income. Schools and lenders will use this completed information to determine the student's level of financial need before granting specific types of subsidized or unsubsidized loans.
Deadlines for completing the FAFSA seem to come quickly every year, so borrowers should fill out the form as early as possible after January 1 of each year. To make the process easier, applicants should gather all necessary personal and financial information beforehand. This includes a driver's license, a Social Security card, any bank or investment statements, and all income tax returns. The FAFSA, like the MPN, also requires the borrower's signature, whether completed in person or online.
Once approved, loan applicants will also have to sign a Master Promissory Note (MPN). This document acts as the contract for the loan. It lists the specific terms and conditions for the borrower, including the amount, interest rates, and repayment strategy for the loan. By signing the MPN, either online or in hardcopy form, the borrower becomes legally bound to repay the loan when the appropriate time comes.
Where to Find the FAFSA
With the advent of more advanced online technology, applicants can complete the entire FAFSA application process, including signing the application, via the web. You can find the official FAFSA website at www.fafsa.ed.gov. Along with the electronic application, the site gives specific instructions with full explanations as well as deadline information in a very easy-to-read format. This government-sponsored website even includes an extensive set of frequently asked questions to help you find the answers to all of your FAFSA-related concerns.
