What is electronic signature (e-Signature?)

American Student Assistance’s (ASA ^®) electronic signature (e-Sign) is a process that allows student and parent borrowers to electronically “sign” a legal document, such as their Stafford or PLUS Master Promissory Note (MPN). Rather than fill out a paper promissory note, sign it in ink, and send it through U.S. mail, e-Sign allows users to quickly and easily take care of their MPN’s online. The entire e-Sign process is efficient and secure and allows you to print a paper version of your MPN for your records once you are finished.

It’s important to note that you can only e-Sign your Stafford or PLUS MPN if the school and lender you are working with participate in ASA’s e-Signature program.

How will I know if the school I attend participates in e-Signature with ASA?

You can check with the financial aid office at your school to see if they participate in ASA’s e-Signature. Also, once the financial aid office has determined your eligibility for a Stafford and/or PLUS loan and has certified your application, a notification letter will be sent to you or your parents with instructions on how to e-Sign your application.

How will I know if the lender I choose participates in e-Signature with ASA?

After you update your MPN online, ASA Direct will automatically check the participation of both your school and lender. If both parties participate in ASA’s e-Signature, you or your parents will be given the option to e-Sign your MPN. If either the school or lender does not participate, you will not be given the option to e-Sign and will instead only be allowed to download and print your MPN or have ASA print the MPN and mail it to you. Remember, however, that you may choose any lender you like for your loan.

What are the benefits of e-Signing my Stafford MPN?

e-Signing your Stafford or PLUS MPN is a faster and more convenient way to complete the loan process. By electronically signing your Stafford or PLUS MPN you avoid having to print, sign, and mail in your application, thereby shortening the time needed to process your loan. In most instances, your loan proceeds will be disbursed sooner to your school as well—check with your financial aid officer if you have questions about when your loan increments will be disbursed to your school.

Which loans can I e-Sign?

Currently, ASA allows student borrowers to e-Sign the federal subsidized and unsubsidized Stafford loan. Parent and graduate student borrowers may use e-Sign to complete their PLUS MPN’s.

How does the e-signature process work?

First, the financial aid office at your school will determine your eligibility for a Stafford loan or your parents’ eligibility for a PLUS loan. If you are eligible, a Stafford and/or PLUS loan will be included in your financial aid package—check the award letter from the financial aid office. Next, your financial aid office will either a) initiate a Stafford loan application for you with ASA by sending ASA a loan certification or b) request that you or your parents go to ASA Direct to initiate the Stafford/PLUS Loan process yourself for them to certify. Once ASA has received your school’s certification for the loan, a notification letter will be mailed to you. The notification letter will give you instructions on how to update and e-Sign your loan application.

You should also understand that you are not required to electronically sign your MPN. If you do not have access to the Internet or would prefer a paper MPN, contact ASA at 800.999.9080 and we will send you a paper MPN.

How will American Student Assistance know that it is me electronically signing the MPN?

For student Stafford Borrowers, the electronic signature process authenticates your identity using the FSA PIN (Federal Student Aid Personal Identification Number). The U.S. Department of Education provides a PIN to individuals who file the Free Application for Federal Student Aid (FAFSA). You should make sure you have your FSA PIN available when you e-Sign your Stafford MPN.

For PLUS MPN’s, borrowers are authenticated and allowed to electronically sign in 1 of 2 ways. The first is through the credit check that ASA performs for the borrower’s pre-approval. If a credit check already exists for that borrower, ASA uses a second transaction with our credit agency called “Trace +”. This is a non-credit check transaction.

What if I don’t have an FSA PIN?

If you do not have an FSA PIN, go to www.pin.ed.gov to apply for a PIN. If you provided an e-mail address when filing your FAFSA, you can have your PIN e-mailed to that e-mail address. If you did not provide an e-mail address, your PIN must be mailed to you. This only applies to Stafford loans.

How long will it take to receive my FSA PIN?

It will take approximately 3 business days after you request your PIN for you to receive an e-mail notification with instructions on how to retrieve it electronically, or 7 – 10 days to receive it in the mail via the U.S. Postal Service. This only applies to Stafford loans.

If I start the process of electronically signing my MPN and I change my mind, will I be allowed to go back to the paper-based signature process? Will I be allowed to print, sign and mail in my loan application instead?

Yes to both questions! Each step of the electronic signature process has an “Exit’ option, which will allow you to revert to printing, signing and mailing in your Stafford MPN or PLUS MPN. However, if you choose to return to the e-Signature process, you will be required to re-start the process of electronically signing your MPN.

If I stop halfway through the electronic signature process, can I start again where I left off?

No. If you exit the electronic signature process, you may return and e-Sign your MPN, but you must re-start the process.

How can I get more information about the e-Signature process?

Borrowers should contact their school’s financial aid office to see if e-Signature is available as part of their Stafford loan or PLUS loan application process.