Reapply Each Year

Most financial aid awards are considered “new” each school year, so you’ll need to submit the FAFSA each year. The easiest way is by using your online Renewal FAFSA starting January 1. Simply update any information that has changed, such as your income or family size, complete any blank areas and review your list of colleges.

You should continue to receive any state or federal aid you received the year before as long as you still meet the requirements. This usually includes making satisfactory academic progress, so be sure you understand your school’s policy.

As you get closer to graduating from college, be sure to check in with your financial aid office to see if there is a maximum number of units after which you may not qualify for financial aid.

Changing schools? If you’ll be changing schools, keep in mind that your financial aid may not automatically go with you.

The Master Promissory Note (MPN)

When students or parents take out a federal Stafford, PLUS, Grad PLUS or Perkins loan, they will be asked to sign a Master Promissory Note, or MPN, which is a written contract between the borrower and the lender. There are separate MPNs for Stafford, Perkins and PLUS/Grad PLUS loans.

Colleges may use the MPN as either an annual (single-year) note or a serial (multi-year) note. As an annual note, borrowers must complete a new MPN for each new loan they receive. When used as a serial note, borrowers complete an MPN the first time they borrow—generally, all subsequent loans for up to 10 years will be disbursed through the original MPN. Borrowers may have to complete a new MPN if they transfer to a different college.

One of the ways borrowers may e-sign their loans online is by using their PIN, or personal identification number. Borrowers should check with their college to see if they offer this option.

Even though borrowers may not have to sign a promissory note each year, colleges are still required to implement steps to ensure borrowers have the opportunity to accept or decline loan funds at "control points." At these points, borrowers may accept the loan amount, change the loan amount or refuse the loan.