Student loans are an excellent way for you to pay for your education. However, wading through the policies of student loan providers can be time-consuming. While lenders are usually quick to compensate institutions when a tuition payment is required, those same lenders may be less prompt when they are making payments to students.
Refund Checks To Students
If you are a college student who is expecting a refund check from your student loan after a portion has been taken out for tuition, you may be waiting for a while. It often takes time to work its way through the full process of the financial aid system.
First, you’ll have to wait for all forms of financial aid to be applied to your bill. These include other forms of financial aid, grants and all loans.
Financial Aid Award Calculations
If you are expecting a refund check for the amount that exceeds the total cost of attending school, you will be disappointed. The amount of your financial aid award is calculated by including tuition costs, living expenses, costs for school supplies and any extracurricular activities where you are a participant. However, if you are involved in a work-study job, there is an exception. The income from your work-study doesn’t count as a form of financial aid when calculations are being made for your refund.
Receiving Your Check
In most cases, your check will be sent within the first 14 days after the semester begins. This will usually allow enough time to post your financial aid and any supplemental financing that you receive. However, if you are a first-time student who has taken out a student loan for school, it may take longer for you to receive your refund check. It is also important to note that if you do drop a class after the deadline has expired, you will not receive a refund for that class.
Depends On The Institution
The time that it takes to receive your student loan refund check may also depend on the educational institution that you attend. It may be a slower process if you are going to school at a community college. They handle a large number of financial aid forms for students who are in attendance. The staff that handles this may be inadequate to handle the large volume of paperwork. In contrast, you may attend a university that has an efficient procedure for providing quick refunds. You may end up getting your student loan refund check in less than a week after classes start up.
Electronic Refunds
If you don’t have a bank account, you may be required to open one so that you can receive an electronic refund. Otherwise, you may have to make other arrangements that will allow you to receive your refund. Typically, there are strict policies regarding who receives this refund. It will usually have to be posted in the personal account of a student who is receiving it. Unfortunately, if you are expecting a student loan refund check, you can’t have your parents or other relatives accept it.
Jim Treebold is a North Carolina based writer. He lives by the mantra of “Learn 1 new thing each day”! Jim loves to write, read, pedal around on his electric bike and dream of big things. Drop him a line if you like his writing, he loves hearing from his readers!