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William D. Ford Federal Direct Loan Program
Rio Hondo College offers
Direct Subsidized and Unsubsidized Loans through the William D. Ford Federal
Direct Loan Program. Students applying for a loan no longer need to select a
lender. The U.S. Department of Education will be the lender. Loan eligibility
requires a student to be enrolled at least half-time in a degree or certificate
program at an eligible institution. Rio Hondo College does not participate in
Direct PLUS loans, Alternative and/or Private Loans.
Subsidized Loans
The
federal government will pay the interest on these loans while the student is
enrolled in school at least half-time and during grace and deferment periods.
Unsubsidized Loans
Interest
begins when the loan is disbursed. Students are responsible for paying the
interest while in school. Payment of interest can be deferred by capitalizing
the interest; however, this increases the principal loan balance.
If you are interested in applying for
a Direct Loan follow the steps below:
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1 |
Awarded Financial Aid Direct
Loans on AccessRio – Financial Aid file is complete and all requested
documentation has been submitted |
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2 |
Request a Loan Packet with
The Office of Financial Aid |
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3 |
Read
Loan Default Management Plan |
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4 |
Submit William D. Ford
Federal Direct Loan Application Worksheet to The Office of Financial Aid |
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5 |
Complete a
Direct Loan Entrance Counseling
- The Direct Loan Entrance
Counseling will explain the Direct Loan obligation you agree as a
condition for receiving a Federal Direct Loan. |
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6 |
Complete
Direct Loan Master Promissory Note (MPN)
- The Master Promissory Note
is a legal document in which you promise to repay your loan(s) and any
accrued interest and fees to the U.S. Department of Education. It also
explains the terms and conditions of your student loan(s). |
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7 |
Application will be reviewed
and processed within 4-5 weeks. If your loan is denied you will receive
an email from the Financial Aid Office explaining the reason(s) for loan
denial. |
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8 |
Check AccessRio for loan
acceptance and disbursement dates. |
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9 |
RHC will release your loan
funds to Higher One, who distributes the funds electronically using the
method of disbursement you choose when activating your myRHC debit card |
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10 |
Complete a
Direct Loan Exit Counseling before your 2nd scheduled loan disbursement. Your 2nd
disbursement will not disburse if this requirement is not successfully
completed.
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Please
consider student loans only as a last resort and only after you have applied for
other forms of financial aid, such as scholarships. All
loans have to be paid back.
The following links can help you search for grants and
scholarships:
 Free
Scholarship search.
www.fastweb.com
Related Links
Know What You Owe - The National Student Loan Data System has information about your
federal student loans.
www.nslds.ed.gov
Manage Your Direct Loans - Make online payments, view your account balances and payment
history, change your billing options, enroll in electronic services and much
more...
www.dl.ed.gov
 Repayment
Calculator -
When it comes time to start repaying your student loan(s), you can select a
repayment plan that’s right for your financial situation.
http://studentaid.ed.gov/PORTALSWebApp/students/english/OtherFormsOfRepay.jsp
FORMS
Default Management Plan
How to apply for a Direct Loan
instructions
Direct Loan Information and
Application Process
Contact Information
Borrower Services
at the Direct Loan Servicing Center
1-800-848-0979
(TTY 1-800-848-0983)
Direct Loan Servicing Online -
www.dl.ed.gov
P.O. Box 5609
Greenville, TX 75403-5609
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