Concern involving Stafford Loan (first time borrower)

<p>Well I'll be an entering freshman in the fall and Friday I went to my college to register for classes and whatnot, and I received papers on financial aid and tuition payments and whatnot. I then read that first time borrowers (Stafford Loan) funds won't be disbursed until 30 days after classes start. The Stafford Loan was the only way that housing & the rest of my meal plan that wasn't covered by other sources of financial aid (grants, scholarship). I'll have a work-study job but I won't get paid until the 15th of each month and the first payment for housing/food is due Aug. 15. I don't know what to do! I can't take out any private loans because my parents don't have any credit; I have a job but most of those funds are going towards a new laptop and college books. I just have no idea what to do. Is there anyway I could just post-pone payment until the Stafford Loan kicks in. Classes start on Aug 22 and I just don't know what to do.</p>

<p>Contact your school’s fin aid dept. At both of my son’s state schools, the stafford loans show as pending and we have never had to come up with money to cover the gap in time between school starting and the loan disbursement. Good luck and I hope your school is equally accomodating as sons’ schools.</p>

<p>No worries! As suggested, you should contact the financial aid department at your school. They should be aware that you have been awarded the Stafford Direct loan and will provide a financial aid fee deferment until the loan is actually disbursed, even if it’s after classes begin. My daughter’s school asks that she file for this deferment before the payment deadline but that’s a simple matter of signing a form. You can also check with the department about a direct deposit of the loan which automatically covers your fees upon disbursement. Good luck and keep asking lots of questions as you enter the world of lots of ‘first times’! ;-)</p>

<p>I think that kelsmom has said in the past that federal loans don’t get disbursed until 10 days before classes begin. Perhaps she can confirm this or correct me.</p>

<p>As others have said, call your financial aid office to discuss the situation with them. They will be certainly be familiar with how the various aid programs work, and work with them.</p>

<p>Federal loans cannot by law be disbursed more than 10 days before the start of the semester. Some schools do wait until 30 days into the term for first time students to disburse. I have no experience with these schools, but I would think it would work the way other schools work … as long as your aid is in order, any scheduled financial aid will be considered as pending & reduce the amount owed to the school. Where the problem comes in is if students need a refund to pay for an apartment or books (although some schools will offer book vouchers against the pending aid), and they can’t get a refund for 30 days. But if you just need it to offset costs owed to the school, I would bet they reduce the amount owed accordingly (again, as long as all your aid is in order … verification complete, awards accepted, loans accepted, promissory note & entrance counseling complete). Call the business office/bursar & ask.</p>

<p>Students on FA often are on a different schedule due to this (so says my schools fa office).</p>