How to Get My Student Loan Up Front
Many college students rely on student loans to pay for more than just the tuition. Student loans can be used to help pay for living expenses and cover the cost of books. The federal government and private banks give the loan money to the school. Any remaining money after you have covered the cost of your tuition will be disbursed to you. Many students rely on this money to pay housing costs and pay for food. They need this money up front to cover current living expenses.
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Instructions
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Contact your school to learn the policy regarding disbursement of loan funds. Some colleges will do a direct deposit into your checking account the first day of classes. Some schools wait until after 15 school days to make sure you do not withdraw from classes before they will issue you disbursement. Other schools will break your student loan up into monthly installments.
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Ask how much of the student loan you will receive. The cost of tuition and fees will be deducted from your student loan, but if you have other forms of tuition assistance such as scholarships or assistantships, you should be able to receive the entire amount of your loan for the semester.
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Meet with your student loan officer to request the student loan be issued to you in full as soon as you qualify for disbursement, instead of receiving monthly installments. You need to have a reason to request this and be willing to prove the circumstances to make this happen. You will not be able to receive next semester's student loans until you have started classes for the next semester.
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Fill out the application to receive disbursement up front or write a letter requesting to receive the full amount available to you for disbursement up front instead of in monthly or weekly installments. The application and letter should outline the reasons you need the disbursement; explain how you will be using the money, with a breakdown of expenses that need to be paid up front.
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Sign up for direct deposit if your school offers it to receive your disbursement. Otherwise, find out whether the school will issue the check on campus of mail it to you. Waiting in line on campus will get you the funds more quickly then having the check mailed to you.
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Set aside money to cover your expenses while waiting for your loan disbursement. Set aside enough to cover basic expenses from your summer job or from your previous loan disbursement to cover the beginning of the semester. If you don't have enough money on hand, apply for a temporary credit card to cover the cost of books or housing if the school delays the disbursement of funds until the withdrawal period is over. Generally, schools that do this will allow you to purchase your books on credit and cover your housing costs because they know that your student loans have already gone through.
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Tips & Warnings
Student loans are meant to cover the costs related to school. If you need money to cover other expenses, you will need to apply for a different type of loan. You can apply for the loan at a bank or get a job to cover expenses that are not directly related to school.
If your parents used a second mortgage or a home equity line to pay for your tuition, you can access this money immediately through your parents. This type of loan will not be sent directly to the school, but rather to your parents. If you are taking out a second mortgage on your own home to pay for school, you can also get the money directly.
References
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