Student Loans and Off-Campus Housing

April 11, 2012 9:37 PM

Mechanics of student loans: How do you route money from private student loans disbursed to the college to private landlords when using off-campus housing?

My son is at college, and is about to go into private lodging for this year, rather than the college's own accomodation.
We are using a private student loan for some of the finance, and want to know how we use it to cover the private lodging, because the disbursement is to the college even though some of it's for tuition and some of it's for lodging. Do we get them to send checks to the landlord, or what? What's the process?

posted by blue_wardrobe to Education (5 answers total)

my college would refund me the balance of the loan after all tuition and fees were paid. i would then deposit that into my won account and pay my rent monthly from it.
posted by violetk at 9:43 PM on April 11, 2012

It should go to the college, the college should subtract out any tuition owed, and cut a check (or direct deposit if he's registered for that) for the remainder to your son.
posted by shivohum at 9:43 PM on April 11, 2012

Keep in mind that depending on how your son's college works, he may not get that check for 6 or so weeks into the semester. A community college I attended did not refund for several weeks after a certain date in the first week. The university I now attend cuts the check the first week. He may not have his money in time to pay the landlord.
posted by asciident at 10:08 PM on April 11, 2012

What asciident describes happened to me, and after a few minutes of pure panic I went to the treasurer's office and they cut me a check for the amount of my first month's rent early. But yes, probably best if you can spot him a month's rent just in case.
posted by ke rose ne at 7:49 AM on April 12, 2012

Yep, you will get an overpayment refund. You can find out now by calling the school's financial services department when they distribute them -- my last school cut them right away, whereas my current school I didn't get it until 2 months in.
posted by DoubleLune at 8:23 AM on April 12, 2012