Understanding financial aid disbursement dates

Financial aid disbursement dates vary by school. While some colleges pay out the money just before the term starts, many won’t disperse the aid until several days or weeks after the first day of classes. Below, we provided some information about financial aid disbursement timelines, how you might qualify for early payouts, and how you can expect to receive your money, based on the type of aid.

When is financial aid disbursed for college?

Paying for college, even with no savings, can be accomplished by cutting costs, working hard, and taking advantage of federal aid and scholarship programs.

Financial aid disbursement dates depend entirely on the college. Common timelines include a few days before the semester starts, a few days after the semester starts, or several weeks into the semester.

The type of financial aid you receive can also dictate when the college disburses it. For example, a school might hand out federal loans in two weeks and grants in three weeks. In addition, you could receive your money late if you’re a first-time federal student loan borrower.

You’ll likely receive at least two disbursements per academic year – for example, one for fall semester and one for spring semester. If you’re attending a summer term, you’ll receive an additional separate disbursement.

You may have to complete certain tasks before you receive your financial aid. Most schools have details about their specific financial aid disbursement dates and requirements listed on their websites.

Can you get financial aid early?

Yes, in some cases, you can receive financial aid money early.

Some colleges provide an early disbursement option, where students receive the money before other students, prior to the start of the semester. Exact requirements depend on the college, and you may not receive all your money early. If your school offers early disbursement, they should provide details on their website.

You can also receive some of your financial aid early if you need to buy books or supplies. As with disbursement timelines, how your college gives you this money depends on the school’s policies. Generally, you’re eligible for early financial aid for books and supplies seven days into the term if you have money left over after your financial aid is applied to your bill. Reach out to your financial aid department to learn more about qualifications.

How will you receive financial aid?

How you receive financial aid depends on the type. Here are some examples:

• Federal financial aid: Federal student loans and grants, including Direct PLUS Loans for Parents, will go directly to your school to be used towards tuition, room and board, and other related fees.
• Scholarships and grants: Whether award money goes directly to you, or the school depends on the organization or state. If you receive the award money directly, make sure you use the money according to the scholarship’s terms and conditions or you could have to pay it back.
• Work-study: Work-study payments come monthly, bi-weekly, or weekly. You can choose to receive the money directly or ask that it be put towards your outstanding college bill.
• Private student loans: Some private student loans go directly to the school, while other lenders send the money to the student to apply towards their education expenses.

Your college will first put your financial aid towards your statement, including tuition, room and board, fees, and any other expenses. If there is any excess money, they typically refund the money to you within 14 days of disbursement, usually by direct deposit to your bank account or check. Some schools allow you to keep it as a balance with them that they will automatically use towards future school expenses.

When in doubt, always check with your school's financial aid office

Since every college is different, visit the financial aid department's website to learn more about disbursement dates and requirements. Complete any related paperwork or tasks before listed deadlines or it could delay your payments. If you run into any questions regarding disbursement, your financial aid offer, or direct deposit, reach out to your college sooner rather than later to avoid any payment issues, delays, or holds on your account.

Student financial aid comes in several different forms. From grants to scholarships and student loans, explore all the ways you can help pay for college. Visit the Citizens Student Hub today to get started.