Provide faster turnaround time when the multi-year feature is used because you won't have to sign a new promissory note each time you need a new loan. Increase the chance that one company will hold all of your loans, and that means you will have one place to send loan payments. The MPN is designed to follow you throughout your academic career. Depending on your school's policy, if you keep the same lender, you probably will keep your original MPN, even if you switch schools. If you want to change lenders, you must sign a new MPN with the new lender.
Lenders can transfer rights to make future loans to another lending institution.
If your lender transfers these rights, and you wish to obtain your future loans from a lender other than the lender listed on your MPN, you will have to sign a new note. Yes, beginning on July 1, 2000. The Department of Education, however, decides which schools can use the multi-year MPN process. If your school is not eligible to use the multi-year feature of the MPN, you will need to sign a new MPN for each new Federal Stafford loan. An MPN is good for 10 years from the date you sign your note.