Most students who complete the FAFSA are eligible for Direct Student Loans. Direct Loans are the best student loans available for college students. A student can borrow money in their own name. They do not need a co-signer, and they are not required to go through a credit check. Interest rates are fixed, and repayment begins six months after the student graduates or ceases to be enrolled at least half-time. We advise students to borrow the minimum amount of loan funds they need. To receive Direct loans, students must apply for them by following the instructions below. Students must complete both Entrance Counseling as well as a Master Promissory Note.
Direct Loan Quick Facts
Credit Check: No credit check required.
Interest Rates and Fees: Direct Loans may be subsidized or unsubsidized depending on the student’s financial need as determined by the FAFSA. No interest accrues on Direct Subsidized Loans while the student remains enrolled in school at least half-time. When interest does begin to accrue on Direct Subsidized Loans, the rate is fixed at 2.75 percent. Interest begins accruing immediately on Direct Unsubsidized Loans. The rate for Direct Unsubsidized Loans is fixed at 2.75 percent. The government deducts a 1.059 percent fee from the loan amount up front.
Repayment: Repayment begins six months after the student graduates or ceases to be enrolled at least half-time (six credit hours).
Refunds: Loan funds are applied to the student’s account, and any refund generated after the student’s balance is paid will be sent to the student by check.
Student Enrollment: Students must be enrolled at least half-time (6 credit hours) in order to receive federal Direct Loan funds.
- Students must file a Free Application for Federal Student Aid at www.fafsa.gov to qualify for Direct Student Loans.
- The student’s Direct Student Loan Application is called a Master Promissory Note (MPN).
- The Master Promissory Note describes the student’s rights and responsibilities as a student loan borrower. By signing the MPN, the student agrees to repay the money borrowed and agree to all terms and conditions included in the MPN.
- The student DOES NOT need to sign a new MPN each school year.
- Transfer students who have borrowed at previous schools will NOT need to complete a new MPN with Thomas More University.
- Visit studentaid.gov. Make sure you have names, addresses, phone numbers for two references before you begin. These references should be people who will know how to contact you during school and after graduation.
- Click the LOG IN button in the center of the screen.
- Log in using your FSA ID. If the student forgets their FSA ID, visit fsaid.ed.gov. Select Manage MY FSA ID , then select Forgot my username or Forgot my password. (this is the same username and password used to sign the FAFSA.)
- Click the “complete aid process” dropdown menu, followed by Complete Loan Counseling.
- Click “Start” button for Entrance Counseling.
- Select your school to notify from the dropdown menu: State=Kentucky, School=Thomas More University
- Select whether you will be applying as an undergraduate or graduate student.
- Answer the questions and submit the Entrance Counseling Form. Be sure to open and complete all tabs.
- Click the link on the right side of the page: Complete a Master Promissory Note.
- Click the “Start” button for MPN for Subsidized/Unsubsidized Loans.
- Enter your information and sign electronically. View the HTML Version of your MPN, then click Continue to submit.
- The Office of Financial Aid will automatically receive notification that the you have completed these steps.