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The fact that the Kobo lists the loan expiration date indicates it is baked into the ebook itself, just like ADE loans.
ADE loans simply become unreadable after the loan expires -- ADE knows you shouldn't be reading the book, and refuses to open it.
The Kindle works differently, since Kindle books have no concept of limited-time books. When the loan (OverDrive or KU or KOLL or what-have-you) is over, the Kindle Cloud status changes and the Kindle itself, upon syncing and noticing that fact, automatically deletes the book.
Keeping the WiFi off temporarily prevents that from happening... at the expense of also preventing anything else from happening either.
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