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Additional Loan Information

How a Loan is Disbursed (Paid Out)

Generally, student loans are offered for a full academic year with one disbursement at the beginning of the fall semester and the second disbursement at the beginning of the spring semester.  Semester disbursements are 10 days prior to the first day of class.

  • Important notice for first-time, first-semester borrowers and one-semester borrowers

    First-time, first-semester borrowers’ loan disbursements will be delayed 30 days as required by the United States Department of Education. The disbursement dates are listed below. Also, students requesting student loans for only one semester will require having the funds paid in two disbursements, receiving half at the beginning of the semester and the remainder of the disbursement at the midpoint of the semester. See the disbursement dates below.

Fall only loans where student has had previous loans:
First Disbursement:        Aug. 20, 2016
Second Disbursement:  Oct. 22, 2016

Fall only loans for first time borrowers:
First Disbursement:        Sept. 28, 2016
Second Disbursement:  Oct. 22, 2016

In most cases the student’s school will disburse the loan money by crediting it to your account to pay tuition, fees, room, board, and other authorized charges. If the loan disbursement amount exceeds your school charges, the school will pay you the remaining balance of the disbursement directly by check or other means. In some cases, with your parent’s permission, the school may disburse some of the PLUS loan money directly to you. We’ll will notify you in writing each time we disburse part of your loan money and will provide information about how to cancel all or part of your disbursement if you find you no longer need the money. You will also receive a notice from us confirming the disbursement. You should read and keep all correspondence received concerning your loan.

Using the loan for education expenses: You may use the loan money you receive only to pay for your education expenses at ASU. Education expenses include school charges such as tuition, room and board, fees, and indirect expenses such as books, supplies, equipment, dependent child care expenses, transportation, and rental or purchase of a personal computer.

Repayment Information

Accepting a loan is a serious legal obligation. It is imperative that all student borrowers have a thorough understanding of all terms and conditions of the loan. Financial Aid Office staff members are available to answer questions concerning interest rates, repayment terms, etc.

The table below demonstrates the loan repayment plan for a total loan amount of $15,000 (the average indebtedness of ASU students). The chart compares the loan at several interest rates with the maximum repayment period of 120 months.

Repayment Information
Interest Rate Monthly Payment Total Interest
5% $159.10 $4,092.00
6% $166.53 $4,983.69
7% $174.16 $5,899.20
8% $181.99 $6,838.80
9% $190.01 $7,801.20

Entrance and Exit Counseling Requirements

Students who receive funding through federal loan programs must complete entrance counseling before receiving the first loan disbursement. ASU requires entrance counseling before loans can be disbursed. Prior to graduating, transferring or dropping below half-time status, all federal loan recipients must complete exit counseling. Entrance and exit counseling are required to inform borrowers of their rights and responsibilities as loan recipients and to allow an opportunity for questions concerning the program requirements and repayment options. Entrance and exit counseling can be done online.

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