Federal Loans question

TheDudeWithTheBigDog, ADN, RN · Jul 9, 2018

The promissory note basically just says that you're going to pay your loan back. Sign it and get it out of the way. And if you don't get accepted, just don't get your loan. Talk to the financial aide office, and they'll make sure that you don't take a loan check, but typically that won't be dispursed if you're not taking classes. But just get something official from the financial aide office, just in case, because mistakes do happen sometimes.

KrCmommy522, BSN, RN · Jul 10, 2018

The promissory note basically just says that you're going to pay your loan back. Sign it and get it out of the way. And if you don't get accepted, just don't get your loan. Talk to the financial aide office, and they'll make sure that you don't take a loan check, but typically that won't be dispursed if you're not taking classes. But just get something official from the financial aide office, just in case, because mistakes do happen sometimes.

Agreed! Preferably, you want to get all that paperwork out the way BEFORE starting. At my school, right before I graduated (and no longer was receiving loans), they came up with a system where you could have the money direct deposited into your bank account, put on a special card, or a check mailed to you. Before that (when I was still receiving loans), they only have 1 option - a check was mailed to you. The money would go to the school, they would take what they needed, and then you would be mailed a check. But it always took FOREVER. If you didn't have your paperwork in waaay ahead of time, it took even longer. So, I always filled out the paperwork the second I could each year!

So, your waiting for acceptance? Are you considering other schools or will you for sure attend this school if you are accepted? If you are for sure going to this school if you are accepted, I would get the paperwork out of the way as soon as possible. You don't want to have to worry about it after the fact. But honestly, I'd probably just do it anyways.

As tonyl1234 said, by signing the promissory note, you are just saying that you will pay the loan back. If you get accepted to the school and sign up for classes, then money from the loan will be dispersed to you. If you do NOT get accepted and are NOT taking classes, then money from the loan should NOT be dispersed to you.

However, again, as tonyl1234 stated, mistakes DO happen. So, just to be safe, I'd make an appointment with financial aid, and discuss with them what happens if you sign the promissory note and do all the paperwork and do NOT get accepted.

I would get something in writing stating that if you sign the promissory note and do NOT get accepted, that either (1) they will NOT be dispersing money to you (because you are NOT accepted to the school, and as such will NOT be taking classes, so it really wouldn't make sense to disperse any money to you, but non-sensical mistakes happen ALL the time), (2) the promissory note is void because you were NOT accepted to the school, (3) If loan money is mistakenly dispersed to you, that you have the chance to return it within such amount of time without being held to the requirements as if you were to accept it, or something along those lines. I would just want something in writing saying that if I sign this but I am NOT accepted, I will NOT get loans dispersed to me and if they are mistakenly dispersed to me and I follow what was laid out previously that I am covered.

If I remember correctly, how it worked at my school - If when we received the money, if we didn't need it all or decided we didn't want that much or whatever, we had so many days to return it without having it act as if we had "accepted" the loan. It could just be returned as if we didn't ever receive it. It wasn't very long, but I would ask about that just in case you don't get accepted and they mistakenly disperse the money to you. But, I really doubt that would happen. But, you never know, and you always want to be covered just in case!!

Good luck!

Arafelle, ADN · Jul 10, 2018

Thank you both! I called them and they confirmed what you both said. I filled out the paperwork in advance while waiting to hear back if I got into the nursing program there.

Wiggly Litchi · Jul 10, 2018

When I just took out loans this past trimester to pay for classes, I had to not only sign the MPN, but then I had to formally accept any awards before money was disbursed. So even if I signed the MPN, if I didn't formally accept the award through the school's financial portal, I wouldn't receive any money or be liable for any loans.

KrCmommy522, BSN, RN · Jul 11, 2018

When I just took out loans this past trimester to pay for classes, I had to not only sign the MPN, but then I had to formally accept any awards before money was disbursed. So even if I signed the MPN, if I didn't formally accept the award through the school's financial portal, I wouldn't receive any money or be liable for any loans.

That's how it was at my school too. We'd fill out a form saying if we wanted full or partial and how much if it was partial. If I remember correctly, we filled it out at the beginning of the year and it was good until the next year, unless we wanted to change it.