Borrower Counseling and Master Promissory Note
Florida National University follows all federal counseling requirements for borrowers under the William D. Ford Federal Direct Loan Program. These sessions—Entrance Counseling and Exit Counseling—are federally mandated, and students must complete them to receive and repay federal loans.
Entrance Counseling
https://studentaid.gov/entrance-counseling/
Who Must Complete It:
- All first-time Direct Subsidized, Direct Unsubsidized, and Graduate/Professional Direct PLUS borrowers.
- Note: Parent PLUS borrowers are not required to complete entrance counseling.
- Available via interactive online modules at StudentAid.gov, with knowledge checks and personalized budgeting tools.
- Can also be offered in-person or via written materials for distance education students. Institutions must ensure completion and provide a Title IV expert for questions.
Purpose:
Ensures students understand their rights, responsibilities, and loan terms, including:
- Master Promissory Note (MPN) https://studentaid.gov/mpn/
- Loan repayment obligations and consequences of default
- Interest accrual and capitalization
- Half-time enrollment requirements
Exit Counseling
https://studentaid.gov/exit-counseling/
Who Must Complete It
- Required for Direct Subsidized, Direct Unsubsidized, and student Direct PLUS borrowers who:
- Graduate,
- Leave the institution, or
- Drop below half-time enrollment.
https://studentaid.gov/help-center/answers/article/need-to-complete-exit-counseling-if-transferring-schools
Purpose
- Ensures borrowers are prepared for repayment; includes:
- Estimated monthly payments and total debt amount
- Repayment plan options (e.g., Standard, IDR)
- Loan consolidation, prepayment, forbearance, and deferment
- Consequences of default, fraud protection, and tax benefits
- Contact info updates and National Student Loan Data System (NSLDS) education
- Borrower rights, servicer contacts, and guidance on third-party assistance
Master Promissory Note
https://studentaid.gov/mpn/
Who Must Complete It:
All borrowers of the following federal loans must complete an MPN:
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Direct PLUS Loans (both Parent PLUS and Graduate/Professional PLUS)
Note: Parent PLUS borrowers must complete their own separate MPN.
Purpose and Legal Role:
The MPN is a legally binding agreement in which the borrower:
- Promises to repay the loan(s) and any accrued interest and fees to the U.S. Department of Education
- Agrees to the terms and conditions of the loan(s)
- Authorizes multiple loans over up to 10 years without signing a new note (if the school chooses to use the multi-year feature)
- It applies to all federal Direct Loans made under that note for educational costs at a single institution.
Information Covered:
When completing the MPN, borrowers receive disclosures and agree to terms that include:
- Interest rates and fees
- Loan limits and eligibility
- Capitalization of interest
- Loan repayment conditions and timing
- Consequences of default
- Borrower rights and responsibilities
- The MPN emphasizes the borrower’s obligation to repay the loan even if they do not complete their education, are dissatisfied with the education received, or cannot find a job after graduation.
Florida National University ensures the MPN is completed before disbursing federal loan funds and retains documentation per federal records requirements.