Promissory Note / Master Promissory Note (MPN)

A promissory note is a binding legal document a student must sign before loan funds can be disbursed by the lender. The promissory note outlines the terms and conditions of the loan, including the repayment schedule, the interest rate and cancellation conditions. Using a master promissory note (MPN) enables you to sign one note to receive multiple loans in different academic years under the same program. An MPN is good for 10 years, after which it must be signed again for additional funds.

Ford Federal Direct Subsidized Loan

Who qualifies?

  • Undergraduate

Need-based loan


  • Based on financial need and academic grade level.
  • Student must be enrolled at least half-time.

Maximum amount

  • Amount awarded is based on financial need after consideration of other financial aid sources, such as grants and scholarships
  • Undergraduate student borrowing is by limited annually by academic grade level, not to exceed $23,000

Maximum award by year

  Dependent student Independent student
1st-year undergraduate $3,500 $3,500
2nd-year undergraduate $4,500 $4,500
3rd- and 4th-year undergraduate $5,500 $5,500

Loan Proration for Graduating Undergraduate Borrowers

If you are scheduled to graduate with your undergraduate degree and will not attend a full academic year, your annual federal loan limits will be prorated.  The amount of your prorated loan(s) will be directly impacted by your hours of enrollment. 

Promissory note

The master promissory note cannot be completed until the loan has been certified by MU. Student will be notified when the MPN is available for electronic signing with the Federal Student Aid ID (or FSA ID).

Additional information

  • Origination fee of 1.059 percent for loans first disbursed on or after October 1, 2019 and before October 1, 2020.
  • Fixed interest rate of 4.53 percent for undergraduate students whose loans are disbursed between July 1, 2019 and June 30, 2020. 
  • Fixed interest rate of 2.75 percent for undergraduate students whose loans are disbursed between July 1, 2020 and June 30, 2021.
  • No interest accrues while you are in school at least half time.
  • Interest begins to accrue the day after the six month grace period expires.
  • Repayment begins six months after graduation, withdrawal or dropping below half-time enrollment.