The U.S. Department of Education's National Center for Education Statistics estimates that between the 1999 and 2009 decade, the cost for tuition, room and board rose 32 percent. Both federal and private student loan programs exist to help you pay the cost of college, though federal loans like the Stafford or Perkins loan generally offer lower interest rates and more favorable repayment plans. In terms of receiving the student loan straight to your banking account, federal loans and some private ones (generally school-certified student loans) get disbursed to the college first, at which point the college pays your student account and refunds you the excess.
Federal and Private School-Certified Student Loans
Contact your school's financial aid office. Ask the representative about student loan disbursement policies and whether the school offers direct deposit.
Complete and submit the required information or form to receive your excess student loan funds via direct deposit. This may involve submitting a voided check or submitting your routing and checking or savings account number over a secure online form.
Look for notification from the school that it has refunded the excess student loan proceeds to your checking or savings account on file. Call your bank or sign into your electronic banking account to confirm that you have received the funds.
Noncertified Student Loans
Research private student loan companies that offers non-certified student loans. To find out which companies offer these loans, ask your school's financial aid experts, your bank or other college student peers. Noncertified student loans typically go straight to your banking account without intervention from the school.
Apply for the private student loan which has the most agreeable terms. Choose the loan product that has the lowest interest rate and other benefits, such as incentives for on-time payments after graduation, deferment or forbearance options. Submit your banking information to the private student loan company to receive your loan proceeds via electronic transfer.
Obtain the date of loan disbursement from the loan company. Check your bank account balance every couple days to confirm the funds have been deposited.
The electronic funds transfer process generally takes up to five to seven business days from the time the school or student loan company disburses funds to the time your bank account receives it.
Private student loans -- whether certified or non-certified -- typically have higher, variable interest rates than federal student loans' fixed interest rates.
If your university uses Higher One to deposit excess disbursements, be careful not to utilize the card as a debit card because of the fees. Request a check for the amount you wish to deposit into your regular account. Direct transfer fees are very expensive.
- National Center for Educational Statistics; Fast Facts -- What Are The Trends in the Cost of College Education?; 2010
- University of Alabama at Birmingham: Non-Certified Loans
- The University of San Francisco: Private Student Loans
- Davis and Elkins College: Private Student Loans
- FinAid: Private Student Loans