Student Loans
Free financial aid, such as grants and scholarships, are the best option to cover the cost of college. If, however, you still need funds to cover the cost of college, federal direct loans may help you bridge the gap. A federal direct loan is a loan offered from the Department of Education and it will need to be repaid with interest.
Beginning Summer 2026 at Allan Hancock College, federal student loan eligibility will be impacted by provisions of the One Big Beautiful Bill Act (OBBBA). A few things to note, under the new federal rules, students must maintain at least full-time enrollment (12 or more units for undergraduates) to receive the maximum annual federal Direct Loan eligibility. Students enrolled in fewer than 12 units will have their federal loan eligibility prorated, which may reduce the total amount they are eligible to borrow for the academic year. In addition, there is a new lifetime federal loan cap of $257,500 total across undergraduate, graduate, and professional loans combined. Please review the One Big Beautiful Bill Act (OBBBA for all updates.
Before considering student loans, you should always seek out aid you don't have to repay
Remember, just because you're approved for a certain loan amount doesn't mean you have to take all of it. You'll have to pay back whatever you borrow plus interest, so taking out more than you need could be costly in the long run.
Direct Subsidized Loans and Direct Unsubsidized Loans are federal student loans offered by the U.S. Department of Education (USDE) to help eligible students cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school.
Allan Hancock College will determine the amount you can borrow based on your cost of attendance and other financial aid you receive. However, there are limits on the amount in subsidized and unsubsidized loans that you may be eligible to receive each academic year (annual loan limits) and the total amounts that you may borrow for undergraduate and graduate study (aggregate loan limits). The actual loan amount you are eligible to receive each academic year may be less than the annual loan limit. These limits vary depending on:
- what year you are in school and
- whether you are a dependent or independent student.
Student Loan Types Offered
Direct Subsidized Loans are available to undergraduate students with financial need. Your school determines the amount you can borrow, and the amount may not exceed your financial need. The U.S. Department of Education pays the interest on a Direct Subsidized Loan.
- while you’re in school at least half-time,
- for the first six months after you leave school (referred to as a grace period*), and
- during a period of deferment (a postponement of loan payments).
Direct Unsubsidized Loans are available to undergraduate students; there is no requirement to demonstrate financial need. You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods. If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).
Federal Loan Application, Eligibility & Repayment
Meet with an Academic Counselor to complete a Comprehensive Student Education Plan (CSEP),
- List your educational goal and degree objective.
- Make sure your program of study and your major match up with your CSEP,
- List the date you are expected to complete your degree objective,
To request a federal loan packet call us at (805) 922-6966 x3200 or visit us at Santa Maria or Lompoc.
Make sure:
- You have completed your financial aid tasks listed on your myHancock account for the year you are requesting a student loan,
- You are in good satisfactory academic standing (you are not in FA cancellation status).
- Complete and submit your student loan request
Entrance loan counseling is required if you not have previously received a Direct Student Loan at Hancock. If this is your first student loan at the college, check My Financial Aid in the myHancock portal for the Student Loan Entrance Counseling prompt which should be available 7-10 business after submitting the loan request.
After completing your online Entrance Loan Counseling (ELC), check your My Financial Aid for the task to complete your Student Loan Master Promissory Note (MPN).
Your Master Promissory Note (MPN) is a legal binding document in which you promise to repay your loan(s) and any accrued interest to the U.S. Department of Education. It also explains the terms and conditions of your loan(s). A Master Promissory Note is required if you have not previously received a direct student loan from Allan Hancock College.
To remain eligible for a federal student loan, you must be enrolled in at least 6 units. However, under the new federal student loan changes included in the One Big Beautiful Bill Act (OBBBA), students must remain enrolled in at least 12 units for the entire term to qualify for the full annual federal student loan amount.
It is important to repay your federal student loans. Failure to do so may result in serious consequences, There are repayment plans availalbe to suppot you.
Hancock partners with Loan Science, a third-party servicer, to support borrowers in successfully managing the repayment of their Federal Direct Student Loans.