How Is Financial Aid Disbursed

Q: How is financial aid disbursed? How will the financial aid money get to me?

A: Most financial aid is disbursed directly to your school of attendance. If money is left over, those funds will be given to you by your school.

Financial aid money must first be used to pay for your tuition, fees and room and board. So your school will first apply all financial aid funds to your account.

If any financial aid funds remain, you will receive them by check or in cash, unless you give the school written permission to hold the funds until later in the enrollment period.

So for example, grants and scholarships normally go directly to your school of attendance.

With Perkins Loans, your school will either pay you directly (usually by check) or credit your account. Generally, you will receive the loan in at least two payments during the academic year.

With Stafford Loans, in general, your school will disburse your loan in at least two installments - there might be certain exceptions.

No installment will be greater than half the amount of your loan. If you are a first-year undergraduate student and a first time borrower, your first disbursement cannot be made until 30 days after the first day of your enrollment period.

If you are a first-time Stafford Loan borrower you must complete Entrance Counseling before you receive your first loan disbursement.

Student loan money must first be used to pay for your tuition, fees and room and board. If loan funds remain, you will receive them by check or in cash, unless you give the school written permission to hold the funds until later in the enrollment period.

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