I become very, very impatient when someone owes me money. I don’t even like the 10 seconds it takes for an ATM to spit out my cash- feels like an eternity. And I am extra diligent about much larger sums of money, like my student loans. If you’re like me, you might be on pins and needles wondering when you actually receive your Stafford loan.
Your lender (in the case of federal loans, this would be the Department of Education) will disburse your Stafford Loan funds directly to your college or university. The disbursement will occur in two installments – typically in the fall and winter/spring semesters. Your school will take the money and apply it toward what you owe in tuition and fees. If there is any money leftover, the excess funds will either be used to credit your account or paid to you directly. Keep in mind that loans are not free money. They collect interest and need to be repaid, so it’s usually best that if you don’t need them, don’t use them! Contact your financial aid office for information on your school’s specific policy.
If summer classes are a regular part of your course-load, chances are your school divided your Stafford funds up to cover you. If you are taking extra summer classes, your Stafford Loans may not cover them. Be sure to contact your financial aid office for more information.
If your school disburses your funds in October, but you need money for September (to pay for off-campus housing, for example), consider a private student loan to cover any expenses you may have in the meantime. You can even compare private loans to find the best deal for you!
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