Sign the Master Promissory Note and finish loan paperwork

Loan paperwork: two steps, not one

They are separate and both are required

• Entrance counseling — a short interactive module explaining what you are borrowing and what repayment looks like
• Master Promissory Note (MPN) — the legal promise to repay, signed once and valid for up to ten years

Completing one does not complete the other. Funds do not disburse until both are done, and an undisbursed loan means an unpaid tuition bill, a late fee, and in some cases a registration hold.

Both are at studentaid.gov, both take about 30 minutes, and both need the student's own FSA ID.

Who signs what

• Direct Subsidized and Unsubsidized loans — the student completes entrance counseling and signs the MPN
• Parent PLUS — the parent applies, passes a credit check, and signs a separate Parent PLUS MPN. This is a different document from the student's.

Note the new limits: Parent PLUS first disbursed on or after July 1, 2026 is capped at $20,000 per year and $65,000 in total per student.

Accept only what you need

The award letter lists what you are offered, not what you must take. You can accept a part of any loan. Work out the actual gap after grants, scholarships and what the family is paying, and borrow that — not the maximum on the page.

Accept in this order: grants and scholarships (never repaid), then federal subsidized loans (no interest while enrolled), then federal unsubsidized, then Parent PLUS or private loans last.

Also finish this month

• Work-study, if offered: accept it formally, then apply for actual jobs. Being awarded work-study is not being given a job, and the good ones go in the first fortnight of term.
• Tuition payment plan: most colleges offer monthly instalments for a small enrolment fee, which is far cheaper than borrowing the same amount.
• 529 withdrawals: time them to the same calendar year as the expense they pay for, and keep receipts. Coordinate with the American Opportunity Tax Credit — paying some qualified expenses out of pocket rather than from the 529 is often what makes the credit claimable.

Watch the bill date

The first tuition bill typically arrives in July and is due in early August. Work back from that date rather than from the start of term.