Do I get the money for my student loan?

Question

I was approved for a student loan. Do I get the money, or do they send it to my school? Also, how long does it take to get?

Answer 1

Your loan agency (the government, or a private institution) will distribute the money to your college, usually about 4 weeks after your semester has begun (for a full length semester).

The school will then use the money to pay off any outstanding debts you have (for classes, for registration, for tech fees, etc.).

Money that is left over, will be given to you in the form of a check, about 2 weeks after that.

You then have the option of either returning it to your loan agency (so you won't owe more later, and so you don't reach your loan limit before you have finished your degree)...
Or cashing it and sending part of the money back to the loan agency (same reasons as above, plus building up a good line of credit, showing you pay your debts)...
Or cashing it and either spending or saving it.

I suggest using what you need for books, then sending the rest back to the loan agency, or depositing it into a bank account that will give you interest. Keep this money separate from the rest of your spending cash or it will soon dissapear, and remember, you always pay interest so you always end up having to pay back more than you borrowed (which is why I returned the checks, uncashed, to the government, my first two semesters in college).

By the time you get to your last 1.5 years, try saving all the money...because 6 months after graduation, you have to start making large payments to the loan agency, and if you don't have a good job, you won't have the money on hand...so save their money and pay them back with it!

Answer 2

If you go through one of the Federal loan programs, it goes to the school, with any surplus to be given to you in the form of a refund, usually three to six weeks after the start of the term.

Make sure you sign your Master Promissory Note, otherwise you may not get any funds.

If you go through a private lender (ie, your bank), the lender decides whether to pay the school directly or you personally.

Answer 3

They send it to your school and you get the refund if there is one. Don't be so eager to spend it though. Wait till you buy all your books and pay all your fees. Returing the money would be smart too instead of just buying something with it. When you graduate you will thank yourself.

Answer 4

depends on the amount of expenses you need. sallie mae is what i used my first year its was in my dads account because he co signed for my financial aid and the loan. i brought my laptop,student books and even living expenses with my money. it took me four weeks from enrollment to get my money from the loan office.but you gotta remeber its not for luxury lol
wish you the best in your education

Answer 5

They send it to your school. If your loan is large enough to pay for all of your school expenses, your school will give you the rest.

Answer 6

if you take out a student lone for lets say 9k and your tuition is only 7k then the 2k will be sent to your home address and 7k to your school

Answer 7

you get any money left over if there is some after paying for the tuition