A query regarding Master Promissory Note (MPN)

Paying for College
1

Hi,
I’m in the process of getting acquainted myself with all ins and outs of Financial Aid for undergrad education. I came across this documentation required to successfully procure Federal Direct Loans (Students, not parents) called the Master Promissory Note (MPN), which is a form on which I take the loan repayment’s responsibility. Now as for the rules of mentioning the references on it, I take it this way - 2 references required, one should be a parent and the other can be anybody known provided both these people don’t have the same address who can be contacted in case I don’t turn up to pay and thus have no responsibility unlike a cosigner does. Only people with US addresses are valid as references.

Now here comes the dilemma for me. I have 2 parents, a CP who’s outside US and a NCP whose within the US. NCP’s location and contact information is unknown. I don’t have anybody known to me personally that I can enlist as a reference. I have the following types of people within US, please advice if they’re fit or not-

  1. A cousin brother who's below 18.
  2. An uncle who never talks to me but is related in the family tree whose contact info and address can be provided. I have bad ties with him. He's the father of the above cousin brother.
  3. 2 family friends (50yo) who're not currently in contact but whose address and contact info are known, lukewarm relation.

What to do in this case? Are the references on MPN really that important or can I just list known people irrespective of whether they’re in contact or not? After all, they’re only gonna receive a call from the loan servicer in case I don’t turn up (which won’t be the case). Do they actually call up those mentioned references on the MPN before disbursement of loans? Or is it only when I disappear? Does this has to be done for all years in college?

2

According to the federal loans website, you need the following information for your references:

Can you get that information? You should also ask their permission to use them as a reference.

3

@austinmshauri, I can get/already have that information (email is optional anyways). Why do I need to ask their permission before setting them up for reference? Besides from being good manners, I believe they’ll only be troubled (only with phone calls) asking about my whereabouts in case I disappear (which won’t happen)?

I don’t have anybody else than the 4 people mentioned in OP.

4

It is common courtesy to ask if someone is willing to be a reference, of any type.

5

@“Erin’s Dad”, other than being a common courtesy, is there any complication/regret if I don’t? The problem is we’re not in talking terms currently but they are the only people that I know of in the US. I’m sure they wouldn’t agree even for being used as a reference because they have a very conservative, risk-abberant, narrow minded attitude who like to stay safe in their little den.

6

So, what do you think they will say if they are called out of the blue to provide a reference for you? Doesn’t sound like that would work out too well either.

7

@CValle, well I’m going to assume they would only call them when I disappear after graduation. But one website states - In some cases the lender may also call the references to verify the information at the time of application.

But then at the end of the day, anybody that one puts up for reference can still deny the student’s whereabouts being known to him.

I don’t know what to do then. Has anybody else been is a similar situation?

8

Don’t overthink it. List someone. List as much info (phone, email) as you have. Yes, the info is to skip trace you if needed.

9

“When” you disappear? Are you planning to take these loans here and then leave the country or otherwise disappear?

This reference information is required. If you can’t provide it, you can’t take a federally funded loan…period.

There have been too many students who have defaulted on their loans, and this is one way to help reduce that number. References who can provide information as to your whereabouts. If you can’t or don’t want to provide that, find a different way to fund college.

10

@thumper1,

Oh no, the phrasing must’ve caused misunderstanding. What I meant to say is that they’d only start calling when somebody disappears and defaults, which won’t be the case with me. US is my country and I want to come back forever for a better life. It’s the country where I’ll achieve my career ambitions. Anyways, I also plan to start clearing partial amounts of the unsubsidized loan debt when I’m still in college.

But as @twoinanddone says, I hope those references aren’t a big deal and I’ll list someone with as much information I can give. Thank you for the advice!