Students are not required to sign a promissory note when the file the FAFSA, or Free Application for Federal Student Aid, advises Fastweb. However, if the student decides to accept a federal student loan, the applicant must sign a master promissory note to receive funds, advises the U.S. Department of Education.Continue Reading
The FAFSA is the first step in obtaining federal aid for education and is required to secure loans, grants and work-study opportunities, states Fastweb. Students are then notified of the financial aid they are eligible for; however, they are not obligated to accept any or all aid offered.
Once the master promissory note is signed, the student is responsible for repaying the loan and interest, states the U.S. Department of Education. After signing the agreement, loans must be repaid, even if the student cannot get a job or does not finish school.
In most cases, students can sign the master promissory note by visiting studentloans.gov, unless the student's college has another signing process, states the U.S. Department of Education. Students must enter their personal information, college information and references into the form. After reading and agreeing to the terms and conditions, the student can electronically sign the agreement.
Parents accepting a Parent PLUS loan to help their child pay for school must also sign a master promissory note to receive funds, advises Fastweb.Learn more about Credit & Lending