How To Understand Your Student Loan Disbursements

Stack of US $1 bills.

Flickr user Earl

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.

Stay On Top of Things

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!

 

Lender Rates (APR) Eligibility
Citizens logo.
5.50%-16.12%* Variable
3.99%-15.61%* Fixed
Undergraduate and Graduate
VISIT CITIZENS
Sallie Mae logo.
5.54% - 15.70% Variable
3.99% - 15.49% Fixed
Undergraduate and Graduate
VISIT SALLIE MAE
Credibe company logo.
4.63% - 17.99% Variable
3.49% - 17.99% Fixed
Undergraduate and Graduate
VISIT CREDIBLE
Lendkey company logo.
6.00% - 13.75% Variable
3.99% - 13.75% Fixed
Undergraduate and Graduate
VISIT LENDKEY
Ascent company logo.
5.66% - 14.72% Variable
3.69% - 14.56% Fixed
Undergraduate and Graduate
VISIT ASCENT
3.70% - 8.75% Fixed
Undergraduate and Graduate
VISIT ISL
Earnest company logo.
5.62% - 16.85% Variable
3.69% - 16.49% Fixed
Undergraduate and Graduate
VISIT EARNEST
5.00% - 14.22% Variable
3.69% - 14.22% Fixed
Undergraduate and Graduate
VISIT ELFI
College Raptor is not a loan lender and does not assume responsibility for suggesting a loan to a user who may not be eligible for it. Rates, terms, conditions, eligibility, approval, and other considerations are the decisions of the lenders and may vary depending on which lender or marketplace the user selects. We urge users to carefully consider and review all loan options and terms before committing to taking out a loan.

Subscribe to Our Newsletter

Join thousands of students and parents learning about finding the right college, admissions secrets, scholarships, financial aid, and more.