If you have student loans, then there are certain terms you need to know in order to understand what you’ve gotten yourself into.
One important term to know is “student loan disbursement”.
Generally, the school will disburse your loan by crediting your student account.
This means that your school will use your student loans to pay tuition and fees.
Your school disburses both Federal student loans and private student loans alike (that is to say, whatever sources you borrow money from will be disbursed by your school).
Students typically receive their federal student loan in two or more disbursements.
This refers to how you’ll actually receive the money you’ve borrowed – and that’s pretty important!
Student loan disbursement is the pay out of funds (loan proceeds) to the borrower (student) by the school.You will need to contact your private student loan lender and ask about your disbursement schedule.The private loan lender determines your private loan disbursements, which should be in the terms of your loan agreement.Usually, your school will pay out your loan disbursement once per term (this could be on a semester or quarterly basis, for example).If your school doesn’t run on semesters or quarters, contact your school to find out when it makes student loan disbursements (usually, it will be at least twice per school year).Yes, you can cancel your federal student loan after it’s been disbursed, but only within 120 days of the disbursement.