Student Promissory Note: Fill & Download for Free

Student Loan AgreementsI won’t make the time to write an adequate answer myself at the moment, but it needs to be said:I hate telling people what to do, don’t let me scare you away:Prospective university students should understand their objectives before attending college. They should understand what jobs are available, and what education is truly necessary in order to acquire employment or otherwise make money. A university education is, ultimately, an investment, and it is unique in that it cannot be discharged as other investments (in property, vehicles or capital in general) can be.It is not a status symbol. It is not indicative of your value as a human being. Furthermore, it is not mandatory.Many students, due to intense social pressure feel it is mandatory. This burden is magnified if one has historically been a high achiever academically or demonstrated a strong work ethic.If you find yourself being pressured into signing a student loan agreement without understanding why you are doing it, I’d advocate stepping back and gathering more information.I’ve shamelessly copied the following from What Is a Promissory Note? Your Student Loan Contract Explained | Student Loan HeroWhat You Need to Know About That ‘Master Promissory Note’ You SignedAlthough the majority of students borrow loans these days to pay for college, many of them don’t understand the terms and conditions of their debt when they sign on the dotted line.Given all the rules and industry jargon, it’s easy to get confused. But if there’s one document you should pay attention to: your Master Promissory Note.So, what is a Master Promissory Note? It’s basically the contract that outlines all the details of your student loan.Let’s take a closer look at promissory notes and how they can clear up any questions you have about your student loans.What is a Master Promissory Note?When you borrow a student loan from the federal government, you promise to pay that loan back — with interest. But that promise isn’t made over the phone or with a hearty handshake.Rather, you make a legal promise to repay your debt by signing the Master Promissory Note. This document outlines your agreement to pay back a specific amount in student loans.As your promissory note will explain, you’re obligated to pay back your loan even if you leave school early or can’t find a job after graduation.The only exception would be if your school closed, violated state law or met another condition that would qualify you for student loan discharge, which, though rare, does happen from time to time.In most cases, however, you’re on the hook for repaying your debt, and your promissory note is the contract that contains that agreement.Read over the details of your promissory noteYour promissory note will also go over the details of your loan, including how much you owe and what your interest rate is. It will explain how interest is calculated, along with your options for student loan repayment plans.Pay attention to these details so you understand exactly what’s expected of you when paying back your loan. Some questions to ask yourself include:Do you have a standard six-month grace period before you must begin repayment?Can your loan be used toward housing and transportation, or is it only for tuition and books?What is the interest rate you agreed to?The answers to all of these questions should be explained in your note. Don’t just sign it because you’re being offered money — make sure that the loan matches your long-term financial objectives.

Assume that John has sold some goods to David. Look at them -Since they were good friends, John agreed to take the money later. But John wants to have some sort of written confirmation.There are two ways in which David can give this written confirmation.David can directly write a letter to John, promising that he will pay, ORDavid can write a letter to David’s bank, ordering the bank to pay the money to John.Let us study these two options in detail:Promise to payIn the first option, David sends a letter directly to John. In this letter, David promises that he will pay the money. If he doesn’t pay the money, John can sue him. This is what it looks like -This letter is called a promissory note.In a promissory note, there are two parties (the one who makes the paper and the one who receives the money).Let us now consider option two.Order to payIn case of an order to pay, David does not write a letter to John directly. Instead, David writes a letter to his bank. In this letter, David orders his bank to pay the money to John. Look at the transaction -This type of negotiable instrument is called bill of exchangeMost common form of bill of exchange is a check. In a check, the person signing the check is the one who is issuing the order. The order is being issued to the bank, to tell the bank that money is to be paid to the person whose name is written on the check.See the following illustration -Differences between the twoPromissory note has two parties - the person who writes the document (David) and the person who receives the money (John).But in a bill of exchange there are three parties - the person who creates it (David), the person who is liable to pay (Bank), and the person who receives the money (John).In a bill of exchange, the person generating the document (David) is not paying. However, in a promissory note, the person generating the document (David) is paying.The person who receives the promissory note (John) is entitled to receive the money. But, the person who receives the bill of exchange (Bank), is actually supposed to pay the money.Hope this clarifies your doubt. For more of my answers related to such topics, follow these blogs on Quora:Finance SimplifiedCA Students Corner

Yes it is completely legal, you agreed to the terms when you signed the promissory note for the loan.