Private College Student Loan

How are student loans disbursed? What actually happens?

I've accepted a few loans from school, (Federal Perkins Loan, Federal Direct Subsidized Loan, Federal Direct Unsubsidized Loan) and i was just wondering what the whole process is, for the school to disburse the loan? Do they give me a check? or is it through something else? and how do they disburse federal perkins, direct subsidized, and direct unsubsidized loans? Thanks!

Public Comments

1. There are two disbursements, one to the school and one to you (actually multiple ones to the school). Grant money is disbursed to the school about two weeks before classes start, loans two weeks after (30 days for freshman, first-time borrowers). Then about three weeks after classes, after everything has been paid for, the remainder for that semester goes to you. Some schools require direct deposit, some mail the check, some require you to go get it from the business office, so call the business office to ask what that school's policy is concerning the checks. All financial aid goes into one lump sum and is disbursed together.