Business & Finance Credit

Can You Change Your Student Loan From School Into Your Bank Account?

    Disbursement

    • Student loans generally are distributed at the beginning of each semester when you are enrolled part-time or full-time. The federal government and private institutions likely will issue student loans directly to your school rather than to your home or bank account. Some schools allow students to track their student loans online to determine when they have been disbursed to their accounts.

    Deductions

    • Before schools release financial aid packages to students, they're able to deduct charges from the total balance issued by the government or banks. Some deductions can be made without requiring student permission -- for example, tuition. Other charges, such as student fees or parking, can be deducted with authorization from students. Your college will deduct what's owed before passing the money along to you.

    Delayed Access

    • If you're anxious to put student loan money in your bank account, make sure there's nothing that will delay the process. Confirm that your promissory note and other loan documents have been signed and filed, and complete student loan counseling requirements. Pay any school fines, including recreational fees or library fines, before student loans are disbursed. Double-check that you've been correctly enrolled in the appropriate number of units to receive your financial award type. Larger student loans are often issued to students enrolled full-time compared with loans issued to part-time students. Make sure the school's financial aid office has your current contact information.

    Types

    • It's possible to move your student loan from the school financial aid office to your bank account in two ways. First, your school's financial aid office can mail you a check for the balance on your student loans after taking out applicable deductions. You also can pick up the check in person. Second, your school can automatically transfer funds into your bank account. You need to fill out a form authorizing this service.

    Personal Use

    • Regulations governing student loans still apply after funds have been transferred into your bank account. Loans must be used for school-related purposes. You can't use student loans to take recreational trips, purchase clothes or go to the movies, for example.

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