We are considering applying for a private student loan to cover additional costs for my son's education. He has received all he is allowed from Federal loans and grants. We are still short about $3000 for the year and other expenses such as insurance, travel home, computer and etc. He is getting ready to enter college next month but was wondering if we apply for loan now with the money disbursed directly to him not the school will they issue the check now or will it wait until he is actually attending next month??
2007-07-12 07:17:22 · 3 answers · asked by Life givs u lemons-make lemonade 1 in Education & Reference ➔ Financial Aid
Being some who was a financial Aid Advisor. When it comes to private loans they are first of all a lot more expensive interest rates depending on your credit.
There are two options for two, One a private loan which can be expensive and a parent Plus loan which you take out in your name for the student. The parent plus loan is a federal loan and the interest rates are alot lower.
In addition, the money normally takes about 3 weeks after a student starts school to disburse, because it takes time for lenders to create an account and secure the funds from the guarnator.
If you have any questions please feel free to e-mail at Joseph_joseph_g@yahoo.com
2007-07-12 07:32:26 · answer #1 · answered by joseph_joseph_g 2 · 2⤊ 0⤋
All student loan money must be disbursed to the school first to apply towards institutional charges. Then, when those are paid in full, the balance will be refunded to him. Most schools follow use the same disbursement schedule they are required to use for federal loans...no aid can be disbursed earlier than 10 days before the start of the enrollment term, and some schools don't disburse aid until after classes start. You'd need to check with the school to see what they specifically do.
2007-07-12 15:38:02 · answer #2 · answered by JRM 5 · 2⤊ 0⤋
JRM is correct.
2007-07-14 20:54:23 · answer #3 · answered by John 3 · 0⤊ 1⤋