Student Loan Disbursement

Learn what student loan disbursement is, when private student loans are disbursed and how they get to the school with this helpful guide

Student loan disbursement is how your school gets the funds you applied for to finance your education. Most forms of financial assistance for students are not disbursed (given) directly to the student, but rather sent to your school, generally by electronic transfer. Some local scholarships may be allocated directly to you, but you will need to let the school know the amount as it may affect your other loan or aid availability. Read on to find out when you should expect to receive student loan money and more.

When are student loans disbursed?

Federal and private student loans and other financial aid, like grants, are usually disbursed at the beginning of each semester, trimester or quarter. The funds are credited to your student account against your tuition bill and other college expenses like room and board. If you are receiving any federal loans, you will need to complete entrance counseling (which explains your rights and responsibilities as a borrower) through your school or before your federal student loans are disbursed. For private student loans, typically there is not the requirement of entrance counseling. Prior to the disbursement of both federal student loans and private student loans, you will need to sign a promissory note from your lender.

Disbursement of overages

When your college loan is slightly larger than the amount you owe the school, you may get back the extra funds, which you can use for living expenses, transportation, books and other school-related supplies. You'll get this "overage," the small difference between what you owe the school and the loan amount, in the form of a student loan disbursement check or credit to your student account. Someone in your college's financial aid office will be able to tell you when you'll receive student loan money and how the student loan overage is disbursed.

Notification requirements for when student loans are disbursed

Typically your private student loan lender will inform you when your private student loans are disbursed. In the case of private student loans, it is also typically the lender's responsibility to let you know of any right to cancel period. If you have any questions, do not hesitate to contact your private student loan lender directly.

Apply for a private student loan from Citizens Bank

When it's time to pay for college, consider how the Citizens Bank Student Loan® can help you meet your financing needs. If you're approved for our school loan, we'll send the student loan disbursement to your college at the start of each semester. Remember, you'll need to re-apply for a loan for each year you are in school. To learn more about college loans from Citizens Bank, speak to one of our Education Finance Advisors. They can help explain your interest rate and term options as well as how a cosigner may help improve your rate or chances of approval.