Loan Disbursements

Loan Disbursements. Direct Loans, Stafford Loans and all PLUS Loan proceeds are generally disbursed to the applicable school in two installments, sometimes more. Generally each installment will be half of the amount of your loan for that school year. If you are a first time borrower, additional procedures may apply. For example, you will need to complete entrance counseling before you receive your first loan disbursement. Direct and FFELP Consolidation Loan proceeds are disbursed to the existing loan holders.

For Direct and Stafford Loans and all PLUS Loans, the school typically credits your loan payment to school charges on your account (for example, tuition and fees). If your loan amount exceeds your school charges, the school will pay you the credit balance by check or other means.