A loan workshop was hosted at Rio Hondo College Wednesday, Feb. 22, for students interested in finding out about the different types of loans available to them, the loan application process, and other loan information.
Corinna Jaramillo, Senior Financial Aid Assistant at Rio Hondo and host of the workshop, talked to students about the differences between subsidized loans and unsubsidized loans, and the amount of money the two loans offer to students.
“A subsidized loan will not include interest while your are in school because the government will pay for it, but the unsubsidized does,” Jaramillo said. “Subsidized loans are for undergraduate students who demonstrate the financial need until you graduate, drop below six units, or reach your maximum subsidy eligibility,” she explained.
According to Jaramillo, first year students (29 units or less) can acquire a total amount of $3500 subsidized loan for an academic year; unsubsidized students can receive $6000 for the academic year.
Jaramillo also talked about the steps students would need to take before submitting their loan applications; the first step being the completion of the Master Promissory Note.
“The master promissory note is a legal document in which you promise to repay your loans…It also explains your terms and conditions of a student loan.” Jaramillo stated.
The other prerequisite to the loan application is the completion of entrance counseling.
“This will ensure that you understand your rights and responsibility as a student loan borrower,” Jaramillo said.
To conclude the workshop, Jaramillo reminded students about the responsibilities that come with taking out these loans.
“It’s a financial contract that has to be payed back with interest even if you don’t finish your degree. Be sure that you limit the loan amounts you borrow only to what you require to complete your program of study,” Jaramillo explained.
Avery Craig, a Rio Hondo student, shared his thoughts on the workshop,
“I think every student, even if you’re going to get a loan or not, should sit through this workshop… If you’re going to go to a 2-year college [or] 4-year university I think this is a vital workshop.”
Jaramillo thought the workshop was important because “a lot of students don’t know the new rules that are coming out so, with the new rules, [and] if they are transferring, this helps them and gives them knowledge of how much they have to borrow once they do transfer.”
For more information, you can visit the financial aid office in SS130.