To qualify for student aid including federal loans, a student must complete a Free Application for Federal Student Aid (FAFSA). This application asks for information such as dependency status and personal and parent income. The information submitted in the FAFSA will determine a borrower's eligibility for federal student loans. Once a FAFSA has been processed and a student is approved for federal student loans, a master promissory note must be submitted.
Before submitting an MPN, a borrower must complete entrance counseling. This is a program in which a borrower is supplied information on types of loans, borrowing, repaying and maintaining a federal student loan. The counseling involves reading and answering questions on the information. The process takes about 30 minutes.
After completing entrance counseling, the borrower is ready to submit the MPN. The borrower's name, address and driver's license number will be required. The name of the school to which the loan will be disbursed will also be entered.
After entering personal information, the borrower will be asked to submit two personal references and then agree to the terms and conditions of the loan.
The final step is to review the information entered and sign the MPN electronically. Once the MPN is processed, funds will be disbursed to the school the student entered. A student cannot receive federal loan funds without submitting the MPN, regardless of whether approval for loans has been granted.