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One loan request is allowable per student per academic year. Once your loan request is processed, you may not make additional requests for the academic year. Your grade level at ����ԭ��, for the purposes of loan eligibility, is locked in for the academic year (Fall, Spring & Summer) once your loan is processed.

One loan request is allowable per student per academic year. Once your loan request is processed, you may not make additional requests for the academic year. Your grade level at ����ԭ��, for the purposes of loan eligibility, is locked in for the academic year (Fall, Spring & Summer) once your loan is processed.

Standard processing timeline for loan requests are 2 – 4 weeks after all steps in the Federal Direct Loan Request Process have been completed. An “Updated Award” email will be sent to you once your loan request has been processed. Approved loan amounts will be viewable under the "Awards" tab in your Financial Aid Dashboard in MySite. Your loan funds are disbursed once each semester (Fall and Spring), generally 30 days into the term.

If you enroll in late-start classes, those units will not be considered in your loan disbursement until after the classes begin.

Students are highly encouraged to sign up for direct deposit. If direct deposit is not set up, students will be provided with an e-check by default, which will be sent to the student’s school email address.

The , passed in July 2025, made significant changes to federal student loan programs. These changes may affect how much you can borrow and which federal loan programs are available to you. 

Loan Adjustments for Less-Than-Full-Time Enrollment

Beginning July 1, 2026, the amount you can borrow in Federal Direct Student Loans will depend on how many units you’re enrolled in:

• To receive your full loan amount, you must be enrolled full time (12 units or more per semester for ����ԭ�� students).
• If you enroll in fewer than 12 units, your loan amount will be reduced based on your actual course load.

This adjustment is referred to as the Schedule of Reduction, which means your loan eligibility can change throughout the academic year if your enrollment changes. 

• For example, if you start the Fall semester as a full-time student but later drop or withdraw from a class or are reported as a no-show, amounts for the following semester (i.e. Spring) may be reduced. There are no exceptions to this policy.

The Federal Direct Loan amount that you are eligible to borrow each academic year (Fall, Spring and Summer) is limited by:

• your grade level* at ����ԭ��, which is locked in for the academic year (Fall, Spring and Summer) once your loan is processed;
• whether you are a dependent or an independent student;
• your enrollment status (full-time or reduced amount for less than full-time);
• your unmet financial need; and
• your cost. You cannot borrow more than your unmet financial need or the cost of your attendance at ����ԭ��.

Since ����ԭ�� is a two-year institution, you may not borrow more than the second-year amount, even if you are enrolled for a "third year."

*Students who have not completed at least 30 units at ����ԭ�� and/or Saddleback College but have completed college-level units at another institution, may request to be considered for sophomore second-year loan eligibility by submitting unofficial transcripts from their prior institution to the ����ԭ�� Financial Aid Office.

Students are responsible for providing their unofficial transcripts for this purpose and requesting they be reviewed by the Financial Aid Office before their loan is approved. Once a loan has been processed, the student's grade level is locked for the remainder of the academic year and cannot be changed.

If the total loan amount you receive over the course of your undergraduate education reaches the aggregate loan limit, you are not eligible to receive additional loans.

Undergraduate Dependent Students can borrow a maximum total of $31,000 (of which no more than $23,000 can be subsidized loans).

Undergraduate Independent Students can borrow a maximum total of $57,500 (of which no more than $23,000 can be subsidized loans).

For the Federal Direct Subsidized Student Loan, the federal government will pay the interest until your six-month grace period ends. Repayment begins six months after you ceased to be enrolled as a student with at least half-time status.

For the Federal Direct Unsubsidized Student Loan, the government will not pay interest while a student is in school. Interest accrues and must be paid or capitalized during periods of enrollment in school and/or deferment.

Current interest rates can be found on the . 

All Direct Subsidized Loans and Direct Unsubsidized Loans have a loan fee or an origination fee. The loan fee is a percentage of the total loan and is proportionately deducted from each loan disbursement. The net disbursement will reflect these fees; therefore, the amount credited to the student's account will be less than the approved loan amount.

This fee is determined by the U.S. Department of Education. Current amounts are available at  

Loan Entrance Counseling is required for all student borrowers applying for a Federal Direct Loan at ����ԭ��. Counseling can be completed online and will help you understand your rights and obligations as a student loan borrower.

You must complete Loan Entrance Counseling and upload proof of completion to your Federal Direct Loan Request Form in before your loan application can be processed.

Other required steps are needed before we can process a Federal Direct Loan Request (please see Federal Direct Loan Process above). You can complete your Entrance Counseling at .

A signed Master Promissory Note is required for all student borrowers applying for a Federal Direct Loan at ����ԭ��. The Master Promissory Note (MPN) 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 loan(s).

You must complete and sign your Master Promissory Note (MPN) and upload proof of completion to your Federal Direct Loan Request Form in before your loan application can be processed.

Other required steps are needed before we can process a Federal Direct Loan Request (please see Federal Direct Loan Process above). You can complete your Entrance Counseling at .

Federal regulations require that all student loan borrowers must have an exit interview/exit counseling when they graduate, transfer, withdraw, or drop below half-time. During exit counseling, you are reminded of your rights and responsibilities as a student loan borrower. Topics include when repayment starts, various repayment plans, deferments, loan consolidation, and consequences of default. For more information about exit counseling, please see .

The U.S. Department of Education's National Student Loan Data System (NSLDS) allows you to access information on loan and/or federal grant amounts, your loan status (including outstanding balances), and disbursements made. Visit for more information.

Your  handles all billing regarding your student loan repayment. After you graduate, leave school, or drop below half-time enrollment, you for Direct Federal Subsidized and Direct Federal Unsubsidized loans before you have to begin repayment. For more information on loan repayment, please see .

You have a choice of repayment plans. How much you pay and how long you take to repay your loans will vary depending on the repayment plan you choose. There are several plans available. For more information, see  .

Your loan provider will notify you of the date your loan repayment begins. We can't emphasize enough the importance of making your full loan payment on time. If you don't, you could end up in default, which has serious consequences. Student loans are real loans — just as real as a car loan or mortgage. You must pay back your student loans. Exit Counseling can be completed online at .

If you , it means you failed to make payments on your student loan according to the terms of your promissory note, the binding legal document you signed at the time you took out your loan. In other words, you failed to make your loan payments as scheduled. Your school, the financial institution that made or owns your loan, your loan guarantor, and the federal government all can take action to recover the money you owe.

Here are some consequences of default:

• You will become immediately responsible for repayment of the entire unpaid balance of your loan and any interest you owe.
• You are no longer eligible for deferment or forbearance, and you lose eligibility for other benefits, such as the ability to choose a repayment plan.
• National credit bureaus can be notified of your default, which will harm your credit rating, making it difficult to buy a car or home, or to get a credit card.
• You would be ineligible for additional federal student aid if you decided to return to school.
• Your wages may be garnished, meaning your loan payments can be deducted from your paycheck.
• State and federal tax refunds can be withheld and applied toward the amount you owe.
• You can be sued.