Everyone knows student loans are used to fund your higher education, but how exactly does the distribution of money work? Do you get it funneled directly into your banking account, or is it sent to your school instead?
So is student loan money sent to you or the school?
Well, it depends. Most financial aid—including scholarships, grants, work study paychecks, and loans—will go directly to the school, where it’s applied to your tuition payments, college fees, on-campus housing payments, and more. Once all outstanding college expenses are paid for, those funds can be transferred to you for everyday living expenses.
That being said, some scholarship or loan options will let the funds go directly to you, the student. Many find this ideal since they can determine what they do with the funds. Others find that sort of control a bit too tempting to spend the money on more superfluous things—which is exactly why so many financial aid sponsors opt to send directly to the school in the first place.
So, in short, both options are out there, but more than likely the money will be sent directly to your school instead of your own bank account.
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