Financial Aid Question!!!?
Okay, I have a Federal Stafford loan already... American Student Assistance sent me a form to sign, it's a Master Promissary Note... I dont get it by signing this am I agreeing to accept another loan? Or am I agreeing to pay the loan I already have? They ask me to pick a lender... How am I supposed to choose?
Answers & Comments
Verified answer
Every year when you get a student loan the Bank will send your a "Master Promissory Note" You have to sign it saying you will pay them back. I'm guessing what you accepted before was from your school saying you want the loan.
Lenders don't really matter to much as they all will give you the same rate but you can think about after school what company you would want to deal with. Myself i picked bank of america because i have a checking account with them. In my view if i had a problem i would help being able to go down to my bank they would be able to help me.
I would be extremely wary about this new Master Promissory Note. It is DEFINITELY NOT for the loan you have already received. A signed MPN is required BEFORE loan funds will be disbursed by a lender, so you can be sure that this new MPN is NOT regarding the loan you have already received. Furthermore, as someone else has already answered, NEVER EVER EVER sign a legal document if you have not read it completely and UNDERSTAND it.
My suggestion to you would be to take it into your financial aid office and speak to the Loan Specialist if possible. That person should be able to help you decipher what the form is all about and answer all your questions about it. As a Loan Specialist myself, I would advise you to bring it in so that I can look at it myself and explain it to you, so hopefully your school's Loan Specialist can do the same.
Do NOT sign this form if you do not understand what it is or what it is for. You should not have to sign another promissory note to repay a loan you already have. This sounds like another one. Call them to find out just to be safe.
Good Luck.