How to Receive a Good Student Loan

Girls of the studentMethods of Cashing a Student Loan

Student loans are of great help, when you can’t handle your educational costs, even with scholarships or grants. Lenders and school policies differ in the method they provide student loan checks. Private student loans, as a rule, will come directly to you, while state or federal government loans (such as Perkins, PLUS or Stafford loan) will go through your school.

Cashing of private student loans

1. Ask your private lender about their method of disbursement. Some lenders mail the check directly to the student, while others send it to the school. For the latter method read the steps in the Cashing of government student loans.
2. Regularly watch your mail for your check to arrive.
3. When your student loan check arrives, take it to the bank, where you hold an account. Cash the check or deposit it into your account. Depending on the amount of your check and the bank’s policies, it will take probably a few days for the funds to clear. Only then you can withdraw some cash.
4. Before spending the money of your student loan on all the different kind of expenses – like books, rent, groceries, daycare and transportation – first of all play your bill at the school, if there is any.

Cashing of government student loans

1. In order to find out if you will get a student loan refund check, add up all the financial aid you expect to receive for the given semester, including student loans, too. From this amount subtract the cost of your school bills (it commonly includes room, board and tuition fee). In case you get a negative number, your entire loan will to go to cover your school bills. In case of a positive number, you will get a loan refund check.
2. Learn at the financial aid office of your school, how and when they issue student loan checks. The date can vary from a few days before the beginning of classes to up to a month after the semester begins. You can ask for an advance payment, if you need money to buy books and cater for your other needs before the semester begins.
3. On the appointed day, depending on your school’s policies, take your loan check from the office or wait for it to arrive into your mailbox.
4. Read step 3 in Cashing of private student loans and follow the process as described there.

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