How Do I Receive My Scholarship Funds?
The type of aid you accepted affects when you’ll get your aid. This article seeks to clarify your question How Do I Receive My Scholarship Funds? After taking a deep reading through this article, you will find for yourself how you can receive your scholarship funds.
Grants and Student Loans
Your grant or loan money will typically be disbursed to you by your school in at least two installments, or disbursements. Your grant or loan must typically be disbursed by your school at least once per term (semester, trimester, or quarter). Your grant or loan money must typically be disbursed at least twice, for example, at the start and middle of your academic year or program, for institutions that don’t use conventional terms like semesters or quarters.
The following may apply if you haven’t taken out a federal student loan before:
- 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. Check with your school to see whether this rule applies.
- If you’re a first-time borrower of a Direct Subsidized Loan or a Direct Unsubsidized Loan, you must complete entrance counseling before your school can give you your loan money.
- If you are a graduate or professional student taking out a Direct PLUS Loan for the first time, you must complete entrance counseling before you receive your first loan disbursement. Note: Counseling isn’t required if you’re a parent taking out a Direct PLUS Loan to help pay for your child’s education.
How you’ll get your aid depends on the type of aid you accepted.
Grants and Student Loans
Typically, the school first applies your grant or loan money toward your tuition, fees, and (if you live on campus) room and board. Any money left over is paid to you directly for other education expenses.
If you get your loan money, but then realize that you don’t need the money after all, you may cancel all or part of your loan within 120 days of receiving it and no interest or fees will be charged.
Your school must pay you directly unless you request that the school.
- send your payments directly to your bank account or
- use the money to pay for education-related charges (e.g., tuition, fees, room, and board) on your student account.
Direct PLUS Loans for Parents
In most cases, your child’s school will give you your loan money by crediting it to your child’s school account to pay tuition, fees, room, board, and other authorized charges. If there is money left over, the school will pay it to you. In some cases, with your permission, the school may give the leftover money to your child.
Click here for more information.