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| Students wait to speak to financial aid counselor. |
As the start of classes nears, students who need help paying for school may wonder how college financial aid disbursement works as they wait for their award to arrive.
"Financial aid is disbursed based on the start of classes or term dates," Jennifer Ruiz, a Sallie Mae spokesperson, wrote in an email. "Colleges and universities set the disbursement date, and disburse aid no more than 10 days prior to the start of the term."
The disbursement date can also depend on the type of aid awarded. For example, a student who relies on federal student loans to pay for college may not see those loans disbursed until 30 days after classes start if the individual is a first-time student at certain colleges, says Shannon Vasconcelos, director of college finance at Bright Horizons College Coach.
Over 65 percent of FAMU students receive some type of federal student aid, while at Florida State the number of students receiving federal aid is closer to 20 percent. Among Florida’s public universities, FAMU has the largest percentage of students receiving federal assistance.
Still, FAMU students complain of difficulty reaching staff in the Financial Aid Office and waiting hours on the phone just to get rushed off by staff.
Outside aid, like that in the form of a scholarship from a private company, is disbursed differently from organization to organization and may come in the form of a check mailed to the student or credit to the student's school account.
What Causes Delays in Financial Aid Disbursement?
Financial aid disbursement can be delayed for a number of reasons. "One of the most common reasons aid might be delayed occurs when a family is missing documentation or additional information to confirm aid eligibility," Ruiz says.
"To avoid potential delays, it's important that families meet all deadlines and submit all requested documentation in a timely manner," she says, noting that completing the Free Application for Federal Student Aid, or FAFSA, by the college's deadline is critical to receiving aid on time.
According to Sallie Mae's How America Pays for College 2021 report, 16% of families say one of the reasons they didn't file the FASFA for the 2020-2021 academic year was because they missed the deadline.
Given that college students most likely began racking up expenses, such as dorm or apartment down payments, laptops, moving expenses and others prior to the start of classes, and most schools aren’t able to provide support before the typical disbursement date, experts suggest students save up during the remainder of the summer in anticipation of paying in cash upfront for necessary items before classes start.
College financial aid disbursement refers to the aid payment process, which typically happens around the time classes start in the form of a credit to the student's account.
Experts say the process is often a seamless one, but there are some steps students can take to avoid a delay in receiving their financial aid. It's important for students to contact their financial aid office if their award is late or doesn't match the amount listed in their financial aid package, they add.
When Is Financial Aid Disbursed?
The exact date of a student's financial aid disbursement depends on the specific college he or she attends.
When Is Financial Aid Disbursed?
The exact date of a student's financial aid disbursement depends on the specific college he or she attends.
"Financial aid is disbursed based on the start of classes or term dates," Jennifer Ruiz, a Sallie Mae spokesperson, wrote in an email. "Colleges and universities set the disbursement date, and disburse aid no more than 10 days prior to the start of the term."
The disbursement date can also depend on the type of aid awarded. For example, a student who relies on federal student loans to pay for college may not see those loans disbursed until 30 days after classes start if the individual is a first-time student at certain colleges, says Shannon Vasconcelos, director of college finance at Bright Horizons College Coach.
The FAMU Experience
Unless, of course, you attend FAMU. All semester, FAMU students have taken to social media to lament the slow and arduous process of receiving their financial aid disbursements. Many have complained that the process at FAMU takes nearly all semester, causing them to be late on rent, not being able to purchase textbooks for classes in a timely manner, going without food and many of the other critical necessities.
Unless, of course, you attend FAMU. All semester, FAMU students have taken to social media to lament the slow and arduous process of receiving their financial aid disbursements. Many have complained that the process at FAMU takes nearly all semester, causing them to be late on rent, not being able to purchase textbooks for classes in a timely manner, going without food and many of the other critical necessities.
Over 65 percent of FAMU students receive some type of federal student aid, while at Florida State the number of students receiving federal aid is closer to 20 percent. Among Florida’s public universities, FAMU has the largest percentage of students receiving federal assistance.
Still, FAMU students complain of difficulty reaching staff in the Financial Aid Office and waiting hours on the phone just to get rushed off by staff.
“There is a lack of guidance with the (FAMU) financial aid. I’ve always had to ask other students how to navigate the iRattler financial aid website,” said one student.
The slow financial aid disbursement issue was one of the many issues raised in a five-page letter, signed by 89 FAMU football players earlier this semester who complained about not getting their scholarship checks until shortly before the end of the semester. This required several student athletes to have to pay rent out their pockets, if they could, or receive eviction notices which also dinged their credit scores.
Last year, a FAMU student started a potion on Change.org which garnered 424 signatures lamenting the sad state of affairs in the FAMU Office of Student Financial Aid. Then, Financial Aid Officials said they would implement a dedicated call center to handle student calls, twelve months later they are still talking about implementing that call center (according to the latest BOT documents), as service in the offices seems to have have gotten worse, not better.
How Is Financial Aid Disbursed?
Federal financial aid and institutional financial aid are disbursed in the form of a credit to the student's account.
Federal financial aid and institutional financial aid are disbursed in the form of a credit to the student's account.
Outside aid, like that in the form of a scholarship from a private company, is disbursed differently from organization to organization and may come in the form of a check mailed to the student or credit to the student's school account.
What Causes Delays in Financial Aid Disbursement?
Financial aid disbursement can be delayed for a number of reasons. "One of the most common reasons aid might be delayed occurs when a family is missing documentation or additional information to confirm aid eligibility," Ruiz says.
"To avoid potential delays, it's important that families meet all deadlines and submit all requested documentation in a timely manner," she says, noting that completing the Free Application for Federal Student Aid, or FAFSA, by the college's deadline is critical to receiving aid on time.
According to Sallie Mae's How America Pays for College 2021 report, 16% of families say one of the reasons they didn't file the FASFA for the 2020-2021 academic year was because they missed the deadline.
At FAMU, the Financial Aid Office, along with the Housing Office, is a part of the troubled Division of Student Affairs.