Since most school's won't disburse your loan funds until the start of your term and possibly as long as 30 days after your first day of enrollment (if you are a first-year undergraduate or first-time borrower), you will not be able to count on those funds to cover a rent expense weeks before the start of your term.
Generally, FAFSA applications are completed quickly. Online applications can be reviewed in as little as three to five days. Federal student loans are generally disbursed directly to the school sometime between 10 and 30 days after classes start.
Generally, your grant or loan will apply toward a full academic year and your school will pay out the funds in at least two disbursements. In most cases, the school must pay at least once per term (semester, trimester, or quarter).
Once it's approved, it would typically take 4-6 weeks for the Department of Education to process the refund.
You can check online or contact your financial aid office to see the status of your financial aid refund disbursement.
College refund timelines vary by school, typically taking several days to two weeks. Submitting a late or incomplete Free Application for Federal Student Aid (FAFSA) can delay a college refund. Refunds may be issued as paper checks, direct deposits, or credits to student accounts.
Disbursement Calendars
Mailed refund checks should arrive within 7-10 business days (Monday - Friday) after check is generated. Direct Deposit refunds are deposited into a U.S. bank account within 3 to 5 business days from the Anticipated Financial Aid Refund date.
Financial aid funds will typically start to disburse (meaning post to your tuition and fees account balance) 10-14 days after the “Last day to drop with a refund” for your latest starting classes. Different types of aid (such as Pell Grants, Student Loans, or Scholarships) may post on different days.
Private student loan funds are usually disbursed (sent) directly to your school's financial aid office. Personal loan funds are deposited directly into the borrower's bank account. Consider consulting with a tax and/or financial advisor to make sure you fully understand the differences.
You should allow 2 weeks until funds are disbursed on approved loans, but it can take less or more time in some cases.
To check on the status of financial aid being disbursed (paid out) to you or your account, check with your college or career school's financial aid office.
Your Financial Aid refund can be used towards any education-related item listed in the cost of attendance such as such as books, transportation, housing, food, and miscellaneous expenses. This also means you are solely responsible for budgeting this refund throughout the semester.
You should expect to get your federal student loan funds before classes start or up to 30 days after classes start. If you receive a federal student loan, you'll receive the funds in at least two payments, otherwise known as disbursements. Your school will likely provide your loan disbursements at least once per term.
Receiving funds
As with the approval phase, the disbursement process can vary by lender. Some banks may send you the funds the same day you're approved. Others may take several business days. Timelines can differ depending on whether you've asked to receive the funds via direct deposit or check.
Generally, getting a federal student loan can take from a few weeks to a few months to go from application to disbursement. The process typically involves the following steps: Complete the Free Application for Federal Student Aid (FAFSA) online at fafsa.gov.
If you're a first-year undergraduate student and a first-time borrower, you may have to wait 30 days after the first day of your enrollment period (semester, trimester, etc.) before your school is allowed to give you your loan money.
Sign up for Direct Deposit
If your bill was paid with cash, check, web check or financial aid and you are eligible for a refund, it will be deposited directly into the student's bank account (regardless of who paid) in 2-3 business days.
The application was delayed because of the FAFSA® Simplification Act passed by Congress, which led the U.S. Department of Education to overhaul the FAFSA® process by shortening the application and making other changes, which caused the 2024-25 application's release to be delayed.
Most colleges and career schools send out financial aid offer letters around the same time as admission offer letters. However, the timing can vary from school to school depending on factors such as the Free Application for Federal Student Aid (FAFSA®) submission date and the number of FAFSA forms the school received.
The disbursement date is the date your school disburses (pays out) your Direct Loan by applying the loan funds to your school account, paying you directly, or both. Direct Loans are usually disbursed in more than one installment.
The most common reasons for delays include the following: Not registering for enough credits: With most grants and student loans, you must be enrolled at least half time. If you're below the required credit amount, your financial aid won't be issued.
A disbursement is an act of paying out money – especially from a public or dedicated fund. It often refers to the payment made for a client to a third party, as reimbursement will be sought from the client subsequently. Disbursement leads to cash outflows.
To check the disbursement status of your federal student aid, contact your college's or career school's financial aid office.
Students in this situation may wonder “what happens if I don't use all of my student loans?” In most cases, colleges will refund the money to the student.