University of Connecticut University of UC Title Fallback Connecticut

General Loan FAQs

Help-32What is a Master Promissory Note (MPN)?

The Master Promissory Note (MPN) is a legally binding promise to repay Federal Direct Stafford Loan funds and PLUS Loan funds (for Graduate students and parents of dependent undergraduate students). In most cases, you will only have to complete the MPN once. In future years, our office determines the maximum loan amount you are eligible to borrow, and notifies you via the Student Administration System. You will be given the opportunity to accept, decline, or reduce the loan offer. The same MPN may then be used to make that and future loans within a ten year period.

Help-32I am graduating in December. Does my loan change?

In compliance with federal regulations, all loans for December graduates (undergraduate students only) are prorated as one half the annual loan eligibility.

Help-32Who can I contact if I have a loan dispute?

The Federal Student Aid Ombudsman works with student loan borrowers to informally resolve loan disputes and problems. You must first attempt to resolve the issue on your own directly with your lender before contacting the Ombudsman. You may contact the Ombudsman Customer Service at 1-877-557-2575 or on the web at

Help-32How can I find out who my current loan servicer(s) are?

You can find information about your federal loans, including the current balance and servicer, by logging into the National Student Loan Data System (NSLDS) via You can access this system using the same FSA ID you used to sign your FAFSA if it was completed online.

Help-32What is loan consolidation?

Loan consolidation refinances multiple loans into one new loan with a new repayment term, monthly payments, and a fixed interest rate. As the consolidation is a new loan, your borrower benefits may change or no longer apply. Some consolidation loans offer special borrower benefits and repayment incentives.  For more information visit

Help-32Who is eligible to consolidate?

Any student who has borrowed through the Federal Stafford, Perkins, and/or PLUS Loan programs.

Help-32How long is the process for loan consolidation?

The typical processing time for loan consolidation is four to eight weeks.

Help-32How is the interest rate calculated for Consolidated loans?

The fixed interest rate is based on the weighted average of the interest rates of all loans being consolidated, rounded up to the nearest 1/8th percent.

Help-32What are some pros and cons of consolidating?

  • Consolidation can lower monthly payments, but lengthens the repayment period beyond the standard 10-year schedule (thus increasing the total interest you will pay on the loan).
  • Though you can consolidate your Federal Perkins Loan with your Federal Stafford Loans, you should be aware that doing so negates certain special benefits of the Perkins loan (loan forgiveness programs, for example). Federal Perkins Loans also lose their interest subsidy when they are consolidated. This means that the government would no longer pay the interest on this loan during periods of deferment.

Help-32Will I lose my six month grace period by consolidating?

Yes, borrowers give up any remaining portion of their grace period when they consolidate. If you wish to consolidate during your grace period, you may request that your lender hold the consolidation until the end of the grace period.

Help-32Can I continue to add loans once I have consolidated?

A student may add one or more loans to the consolidation no later than 180 days after the issue date of the consolidation loan.