Federal Stafford Loan

What is Disbursement?

Disbursement of a Federal Stafford loan occurs when the student's lender sends money, typically in the form of a paper check or Electronic Funds Transfer, to UAlbany.  When received by Billing and Account Maintenance, the funds are applied to the student's account as a payment.

If the loan disbursement equals or exceeds the student account balance, the disbursement will be apply to the account and reduce the account balance to zero.  Any loan funds left over will be refunded to the student.

The process of applying a loan payment to a student account and then generating a refund check to the student typically takes 7 to 10 business days from the day the loan payment arrives at UAlbany.

Billing and Account maintenance applies the loan to the students account.  The Bursar's Office generates and mails refund checks to students.

How Often Are Loans Disbursed?

Starting in Summer 2006, loans will be disbursed once per term.  Students receiving Fall/Spring Stafford loans will have half their loan disbursed in the fall term and remaining half disbursed in the spring term.  Students borrowing all their loan in one term will have one disbursements in that term. 

The Department of Education has also eliminated the 30 day disbursement delay for new students.

Stafford Disbursement Schedule

The schedule of the earliest disbursement dates for Federal Stafford Loans is determined by the Department of Education.  The Stafford disbursement schedule for the 2007-2008 aid year is as follows:

Loan Term	Loan Period	Disb #1	Disb #2
Summer	5/27/08 - 8/15/08	5/19/08	N/A
Fall/Spring	8/25/08 - 5/14/09	8/15/08	1/12/09
Fall	8/25/08 - 12/17/08	8/15/08	N/A
Spring	01/21/09 - 5/14/09	1/12/09	N/A