this might be a dumb question, but do i have to sign the federal master promissory note in order to receive my undergrad federal loan (5500)? i am asking because it requires two references and states one must be a parent but that you cannot share the same address.
Taking a look at my D’s MPN, it states that she needs references from two people with different U.S. addresses who have known her for at least three years. Check your MPN again.
And yes, you will have to complete and sign the MPN; this is your loan.
Completely new to federal loans here; what exactly are the references for and what’s needed for them?
@ACollegeHopeful3, the two references: #1 a parent and #2 another person that you choose, must have different U.S. addresses. That is, they can’t live in the same household or share the same address.
so the references just have to have different addresses from EACH OTHER, and not from me? i.e. one parent can have the same address as me and the other can be different?
@mrelonmusk they’re to sign a note basically saying i will pay back my federal student loans, and i assume these people would be used to track me down in the event that i do not.
Yes, the references are to have difference addresses from each other. So, one must be a parent, and the other someone else that you choose.
The loan entrance counseling and MPN must be done the first time you take out federal student loans, at least it was that way for my D.
This year she only had to accept them in her student portal.
okay, that makes more sense. thanks all!
@mommdc Are the loans disbursed to the student directly or to the school? What would I need to do if I switched schools during the summer before school starts (acceptance and enrollment into previously waitlisted school)
To the school. You have to do the loan documents with the school you are attending. If you change, you must do them again.
And make sure the second school also is listed on your FAFSA (the code).
I would need to cancel the first one, right? How would I do that and is there a penalty for doing so?
No. If you don’t go to State U, then your loans won’t be funded. Loans are part of your financial aid package, and the whole thing will be cancelled if you don’t go, but if you registered, make sure you have properly withdrawn from the school; tell everyone at School #1 that you won’t be going -the financial aid office, registration, admissions, etc.
The second school will need to prepare a financial aid package for you. They’ll need your FAFSA, so you have to add them to receive your FAFSA (the code). Contact that FA office to make sure that they have a package for you.
@twoinanddone Thank you!
The school you attend will be th only one who will receive your loan.