A promissory note is a binding legal document a borrower must sign before loan funds can be disbursed. 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 the borrower to sign only one note and receive multiple loans in different academic years under the same program. An MPN expires after 10 years, after which it must be signed again for additional funds. Students who are minors may sign a master promissory note in order to receive federal student loans. Students and parents can sign a master promissory note for federal student loans at www.studentloans.gov.