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 Unsubsidized Loan

Who qualifies?

  • Graduate
  • Undergraduate


Maximum amount

  • The amount for which you are eligible depends on your year in school and the amount of subsidized loan money for which you are eligible
  • This loan must fit within the Cost of Attendance after other resources, such as scholarships and subsidized loans, have been considered
  • Undergraduate dependent student borrowing is by limited annually by academic grade level, not to exceed $31,000 including subsidized loan balances
  • Graduate student borrowing not to exceed $138,500 including undergraduate loan balances.

Maximum award by year

Dependent student1 Independent student2

1Except those whose parents are unable to borrow a PLUS loan.
2These limits also apply to dependent students whose parents are unable to borrow a PLUS loan.
3The numbers in parentheses represent the maximum amount that may be subsidized.

1st-year undergraduate $5,500 ($3,500)3 $9,500 ($3,500)
2nd-year undergraduate $6,500 ($4,500) $10,500 ($4,500)
3rd- and 4th-year undergraduate $7,500 ($5,500) $12,500 ($5,500)
Graduate/professional Not applicable $20,500

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 federal PIN.

Additional information

  • Low-interest loan for students to help pay for the cost of higher education
  • Not based on financial need
  • Lender is the U.S. Department of Education
  • 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 2.75 percent for undergraduate students whose loans are disbursed between July 1, 2019 and June 30, 2020.
  • Fixed interest rate of 4.30 percent for graduate students whose loans are disbursed between July 1, 2019 and June 30, 2020. 
  • Interest accrues and is charged during all periods, including grace and deferment periods
  • Repayment begins six months after graduation, withdrawal or dropping below half-time enrollment