Q&A: Is there any way I can change my MPN?
Question by Gaby D: Is there any way I can change my MPN?
I was talking to my parents about paying my loan off during school, if I had extra money.
During my electronic MPN signing process, I accidentally chose “I wish to pay interest during school”, absent-mindedly confusing “pay back interest” with “pay back the loan itself”. Sallie Mae’s website isn’t helping at all, it’s not that user-friendly and says nothing about changes like this.
Calling them isn’t helping much, either. There are no options from Sallie Mae about changing anything on the loan; when I call them all I get is options for Guarantors, cosigners, representatives, and the like.
Is there any way I can do this?
I haven’t received the funds, and my first disbursement is scheduled for September.
Answer by NotAnyoneYouKnow
With very few exceptions, educational loans do NOT have a pre-payment penalty. This means that you are free to make unscheduled payments of any amount (right up to paying off the loan).
The fact that you checked the “I’ll pay the interest” box put you on the hook to make an interest payment every month, but it did not affect your ability to send Sallie Mae a nice, big check any time you feel like it.
You don’t need to make any changes to your promissory note to make occasional non-scheduled payments. I think if you read your note thoroughly, you’ll find the section that explains that the loan does not have a pre-payment penalty clause.
As an example, here is the relevant section from the Master Promissory Note that all Stafford lenders use:
“I may prepay all or any part of the unpaid balance on my loans at any time without penalty. If I do not specify which loans I am prepaying, the lender will determine how to apply the prepayment in accordance with the Act.”
All of this information should also be reflected in the additional information that your lender was required to provide you – the one called “Borrower’s Rights and Responsibilities”:
“There will be no penalty for prepaying any portion of
I hope that helped – good luck!
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