Loan Application Processing Deadlines

The Student Loan Request forms will be available on the first day of the new academic semester.

  • Student Loan Form Final Deadline Request Date.
    • Fall and Spring – One Month before academic semester ends.
    • Fall Only – One Month before academic semester ends.
    • Spring Only – One Month before the academic semester ends.
    • Please allow our office processing time for Student Loan Forms.
  • Disbursement Dates
    • Disbursement dates are available on our website.  
    • Please note that late start courses will delay the disbursement dates.
  • There are no Federal Direct Loans available in the summer terms.

* Late loan requests may not be accepted to ensure compliance with federal regulations*

Important Federal Direct Student Loan Updates.

  • Beginning with the 2026-2027 academic year, changes under the One Big Beautiful Bill Act (OB3) may affect Federal Direct Loan eligibility. Students enrolled in fewer than 12 units may have their annual loan eligibility prorated based on enrollment intensity.

Enrollment Examples

  • If enrollment drops below full-time: A first-year independent student approved for the maximum Subsidized Direct Loan amount of $4,500 while enrolled in 12 units may have their loan reduced if they later drop to 9 units.
  • For illustrative purposes only, the student’s annual loan eligibility could be reduced to approximately $3,375. Actual prorated loan amounts may vary based on federal guidance and institutional calculations.
  • If enrollment remains full-time: A student who remains enrolled in 12 or more units may remain eligible for the full loan amount for which they qualify.
  • Important Reminder that adding, dropping, or withdrawing from classes may impact your federal student loan eligibility and award amount. Please monitor your enrollment carefully throughout the academic year.

How to Request a Federal Direct Loan

  1. Meet with an Academic Counselor to create a Comprehensive Educational Plan and have this available to submit with your Student Loan Form.
  2. Contact the Rio Hondo Financial Aid office to request the Student Loan Form.
  3. Submit a valid unexpired Front and Back copy of your Driver’s License or valid government issued ID.
  4. Request the Direct Loan by the deadline based on the semester or aid year.
  5. Complete and submit a Master Promissory Note (MPN) for Rio Hondo College.
  6. Complete and submit a Loan Entrance Counseling every year you are requesting a Federal Direct Loan for Rio Hondo College.
  7. If it is your 1st time accepting a Federal Direct Loan, you must complete and submit an Annual Student Loan Acknowledgement. –

Interest Rates

Interest rates for Direct Subsidized and Unsubsidized Loans are set annually by federal law and may change each year on July 1. The rate you receive is based on the date your loan is first disbursed and is fixed for the life of that loan. This means if you borrow loans in different academic years, you may have multiple loans with different interest rates.

First Disbursement DateSubsidized Loan Interest RateUnsubsidized Loan Interest Rate
July 1, 2026 – June 30, 20276.52%6.52%
   

Origination Fees 

Federal student loans include an origination fee (also called a loan fee), which is charged by the U.S. Department of Education. The current loan fee is 1.057% 

  • This fee is deducted from each loan disbursement before you receive the funds 
  • As a result, the amount you receive will be slightly less than the amount you borrow 
  • However, you are still responsible for repaying the full loan amount borrowed, not just the amount you received 

Exit Counseling

Federal regulations require all student loan borrowers to complete exit counseling during their final semester at their college.

Exit counseling is designed to help you understand your rights and responsibilities as a borrower. During this process, you will receive important information about:

  • Repayment options and expectations
  • Loan servicing and payment schedules
  • When repayment begins and what to expect after leaving school

Your loan servicer will also be notified and will provide details about your repayment start date.

Exit counseling can be completed online at:
 https://studentaid.gov/exit-counseling

Loan Default Consequences 

Default occurs when you fail to make your student loan payments according to the terms of your promissory note, the legal agreement you signed when you received your loan. 

If a loan goes into default, your school, loan servicer, guarantor, and the federal government may take action to collect the money owed. 

Consequences of default may include: 

  • Damage to your credit score, making it harder to rent, buy a car, or purchase a home 
  • Ineligibility for future federal student aid 
  • Wage garnishment (deductions from your paycheck) 
  • Withholding of federal and state tax refunds 
  • Additional late fees, collection costs, and possible legal action 

For more information on default and options to resolve it, visit: 
https://studentaid.gov/manage-loans/default/get-out 

F.A.Q