Student loan disbursement refers to the manner in which you will receive the money that you’ve borrowed. There is no standard procedure for disbursing student loans. The loan disbursement method varies considerably from one college to another and also on the type of student aid that you receive.
How Student Loans are Distributed
In most cases, student loans are disbursed by crediting the student’s account, which means the college uses the loan directly towards payment of the tuition and fees. If there is any balance left over after paying these two expenses that is credited directly to you. This may be done by direct deposit, check, or any other acceptable method.
Your college must give you details of your student loan disbursement in writing. This written notification is usually sent before the disbursement is made and at least 10 days before classes commence. The notification should typically include details of your total loan amount, when you can expect to receive the different types of loans, and how you will receive each one.
The most important thing to know about student loan disbursements is that you should not presume anything. If you have not received any notification from your college’s account’s office within 10 days prior to your classes starting, you must get in touch with them to determine the specific way in which your student loan will be disbursed.
Use College Raptor’s free Student Loan Finder to compare lenders and interest rates side by side!