Stafford Student Loan News

I get asked “where’s my stafford loan money” at least twice a day. I feel bad for these students too. It’s as if they’ve been thrown to the wolves to fend for themselves. I know at 18 I was a few fries short of a happy meal so I suspect some of them are too.

Basically, this is how it works. You’ll be paid through your school in at least two installments. No installment may exceed one-half of your total loan amount. Your loan money must first be applied to pay for tuition and fees, room and board, and other school charges. If loan money remains, you’ll receive the funds by check or in cash, unless you give the school written authorization to hold the funds until later in the enrollment period.

Generally, if you’re a first-year undergraduate student and a first-time borrower, your school cannot disburse your first payment until 30 days after the first day of your enrollment period. This practice ensures you won’t have a loan to repay if you don’t begin classes or if you withdraw during the first 30 days of classes.

To apply for a stafford loan (click here).