Receiving the funds for your private student loan depends on whether you’re borrowing an in-school loan or refinancing an existing loan.

For in-school private student loans, the funds are typically sent straight to your school to cover tuition. The school then gives the rest of your loan money directly to you, the student, for other expenses related to getting your degree, such as housing.

Your school sets the disbursement date (when you actually receive the money), which is usually around the beginning of the semester. Regardless of when you applied for the loan, your school’s disbursement date will be the same.

However, it’s best to apply early so that you can avoid any unexpected confusion or delays. We suggest giving yourself at least 30 days to be safe, but be sure to contact your financial aid office to learn more about accessing your funds.

For student loan refinancing, no new funds are disbursed. Instead, your new private lender pays off your existing loans and gives you a new loan with new terms. This generally happens within a few days, but always check with your lender(s).