What is a master loan promissory note?

    Published: 06-16-2009
    Views: 11,538
    Financial advisor Brad Barnett discusses what a master loan promissory note is.

    Brad Barnett

    Brad received his Bachelor of Science degree from Southern Arkansas University, with a major in Psychology and a minor in Business.  He furthered his education by graduating from the Medical College of Virginia at Virginia Commonwealth University with a Master of Science degree in Rehabilitation Counseling, specializing in Mental Health.  He has been involved in the financial aid and/or rehabilitation professions for the past 15 years. Brad, a Past President of the Virginia Association of Student Financial Aid Administrators (VASFAA), currently serves as the Senior Associate Director of Financial Aid & Scholarships for James Madison University.  Immediately prior to JMU, he served as an Assistant Director of the Financial Aid Office at Virginia Commonwealth University.  Brad has presented numerous sessions at state, regional, and national conferences, and has served on a variety of association committees.  In addition to speaking at professional conferences, Brad has conducted an abundance of workshops and presentations in non-conference environments, including teaching a credit based financial literacy course at JMU entitled “Dollars and Sense.”  Many of the topics Brad’s speaks on include communication, leadership, values, financial aid policies and procedures, financial literacy, and saving for college.  He has also facilitated strategic planning and value development retreats.

    Host: What is a Master Loan Promissory Note?

    Brad Barnett: When you apply for Federal Student Loans, you have to complete a Master Loan Promissory Note. This is, think about from a perspective, if you had a house loan or a car loan or any type of loan you take out, you have to sign a promissory note. It tells you what your rights and responsibilities are, tells you this is a loan and you do have to repay it. The same thing is true with federal loans, you need to submit and complete a Master Loan Promissory Note when you first start taking out your loans