Question

What is the significance of signing a promissory note?

A. You are letting a school know that you have accepted the aid package outlined in your financial aid award letter.
B. You have accepted a school’s offer of admission - you are ""promising"" the school that you will let all other schools know you are declining their offers of admission.
C. You are formally accepting a loan and agree to pay it back in accordance to the terms that are outlined for that loan.
D. You are notifying the school that you have carefully read through the financial aid award letter you received.

Answer 1

Signing a promissory note is a legal agreement to repay a loan under the specified terms and conditions, making it a crucial part of accepting financial aid for college.

Step-by-step explanation:

The significance of signing a promissory note primarily relates to the formal acceptance of a loan and the commitment to repay it under the specified terms. This is crucial in the context of financial aid for education, where a student may apply for a loan to cover the costs associated with college. By signing a promissory note, you are not just acknowledging your understanding of your financial aid award but agreeing to a legal contract that outlines your responsibility for repaying the loan amount along with any applicable interest and fees according to the plan agreed upon.

Option C is the correct answer. When you sign a promissory note, you are legally obligating yourself to repay the loan, including any interest that accrues. It serves as a legally binding contract between you and the lender.