Notification of Federal Loan Disbursement Policy

 UT Southern hereby notifies students who have accepted Federal Direct Loans as part of their financial aid award package (or whose parents are receiving Federal Plus Loans) that loan disbursements will arrive at the University in the form of an Electronic Funds Transfer (EFT) with a roster of all loans in the transfer. The loan amounts, by federal regulation, must be released by the lenders in equal installments to cover the periods of enrollment of the academic term. If eligible, the loan disbursements will be disbursed to the University after census day. Loan proceeds will be credited to the student’s account within 3 days of receipt and any excess refunded to the borrower within 14 days after the University’s receipt of the funds if a credit balance is generated and a request to hold a credit balance is not on file in the business office. Under rules dictated by the federal government the University is not allowed to release the first loan disbursement to a first-year, first time undergraduate until thirty days after the first day of class of the semester or module have elapsed.