Stafford Loan Disbursement
Students that are eligible to receive a Stafford Loan will receive their award through their schoolís financial aid office, generally in at least two installments. No Stafford Loan disbursement installment amount may exceed one-half of the total loan amount. Your school will use your loan money first to pay for tuition and fees, room and board, and other school charges. If any loan money remains, you'll receive the funds by check or through ACH electronic Bank deposit, unless you give the school written authorization to hold the funds until later in the enrollment period.
Students that decide to drop courses after theyíre received their Stafford Loan disbursement will be required to pay to funds back the Direct Loan Program. The required repayment amount will be based on the number of units the student has now versus the amount of units the student previously had before they dropped courses. If payment isnít received then the student will not be able to receive any additional financial aid in the future.
Students can contact their financial aid office or the Direct Loan Program to discuss when their Stafford Loan will be disbursed. Most financial aid offices will send a financial aid award letter indicating the total Stafford Loan award amount and how much you will receive for each semester. The award letter usually indicated when the remaining funds will be disbursed after all school costs have been paid.
If you're a first-year undergraduate student and a first-time borrower then your school cannot disburse your first payment until 30 days after the first day of your enrollment period.
Students that are attending summer school to complete units to graduate will not be able to receive a Stafford Loan disbursement, since disbursements only take place during the Spring and Winter sessions. Itís important to note that students should have other options available to pay for their summer sessions.