(Stafford, PLUS, Alternative, NJ Class)
All financial aid must be managed through the Financial Aid Office (if you've gone on your own to get a loan, it must still be certified by our Financial Aid Office). Once our Financial Aid Office determines you are eligible for a Federal Student Loan AND you have returned your signed Award Agreement to the Financial Aid Office accepting the loans so they can be certified, they will begin to appear on your bill as "Pending Aid", reducing the balance due. This means that we expect to receive these funds on your behalf however they have not yet arrived. Once we receive these funds from your Lending Bank, they will be applied to your bill as a transaction and removed from the "Pending Aid" portion of your bill.
When will my loans come? Student loans are not released for disbursement until the semester has started but will show as "Pending Financial Aid" on your student account, reducing the balance the student must satisfy. Once the semester starts, loan disbursements are received once each week on Wednesday. Student Borrowers can monitor their student account through CampusWeb to see when their loan funds have been disbursed to their account. You can also contact the Business Office anytime after Wednesday to confirm receipt of your loan during any given week. If your loans haven't been received after 30 days from the start of the semester or when your loan was approved (which ever is later) you should contact your Financial Aid Counselor to see if there is a problem getting the lender to release your loan (some common reasons are, you have not signed your promissory note, or you have not chosen the lender who will service your loan).
How will my loans come? Most loans are disbursed directly to the University via EFT (electronic funds transfer) and as long as your financial aid file is complete the funds are immediately applied to your student account. You can arrange for an Education Loan through the Financial Aid Office and choose any lender listed on the National Disbursement Network (there are hundreds of lenders who participate). If you are interested in a lender that does not participate, you can arrange for a loan directly with that Bank instead of through our Financial Aid Office (though our Financial Aid Office will still need to certify the loan once your lender forwards the loan notice to us). Non-participating lender disbursements will likely be disbursed via paper check through the mail which will require your endorsement along with the University's endorsement. If that is the case, when we receive the check, we will contact you via your Drew email to stop by the Business Office to endorse the check, and the check will be deposited to your student account.
What if my loan funds are sent directly to me? These types of loans are called "Direct to Consumer Loans" and are not part of your Financial Aid Award. Students may make use of these loans but you must ensure the funds are in your possession on or before the Payment Deadline for each semester (August 5th for the Fall or January 5th for the Spring) so that you can make payment to the University on or before the Payment Deadline. A Direct to Consumer Loan "Approval" is not sufficient to satisfy an account balance (warning regarding Payment Deadlines). For this reason, and that these types of loans carry very high interest rates, we strongly suggest students make use of other Student Loan options before using these types of loans. A student can contact their Financial Aid Counselor to discuss what Student Loan options are available.
How much of my loan is sent to Drew? All student loans will be disbursed in two (2) separate disbursements, one for the Fall and one for the Spring. If the loan is intended for the Fall only the loan will still be disbursed in two (2) separate disbursements after the semester starts, the second coming atleast 30 days following the first disbursement. If the loan is a Spring only loan, the loan will be disbursed in one (1) disbursment once the semester begins. The Department of Education allows a Lending Bank to retain up to 3% of the Student Loan as a Lender Fee (some do, some don't). For example if you took a loan for $5,500 and your Lender has chosen to retain the full fee, you can expect to have two disbursements of $2,667.50. The Financial Aid Office will find whether your Lender retains a fee and at what percent and include that information when posting the loan to your financial aid package.
What is a Financial Aid Hold? There are a few things that can keep the Business Office from applying a Stafford Loan or NJ Class Loan to your student account once the funds are received (Private and PLUS loans do not have these requirements). The Business Office will notify you via your Drew email if you have a Financial Aid Hold at the time your loan funds are received directing you to contact the Financial Aid Office to find out what you need to do. There is a limited amount of time you have to satisfy any hold(s) before the Business Office will be required by Federal Regulation to return the funds, canceling your loan so do not delay in addressing these issues if/when you have been notified. These are the types of holds that can delay your loan and how to resolve them:
Entrance Interview. If you are a first time Federal Stafford Loan Borrower, you must first complete a Stafford Entrance interview
online. Once your Entrance Interview is completed the Financial Aid Office will confirm and document it, releasing the funds to your account. As a first time borrower you may complete the interview at anytime before your funds arrive to prevent this delay when your funds are received.
Verification Selection. If your financial aid file has been selected for verification by the Department of Education, you will be notified by the Financial Aid Office regarding what requirements you must comply with in order to complete the verification process. Once Financial Aid is able to clear your verification hold the Business Office can apply your loans to your student account (again there is a limited amount of time for this process to be completed before the funds must be returned to the Lender so address these requirements quickly).
CRED Hold. To receive Federal Financial Assistance you must be enrolled at least half time (6 credits or more for both undergraduate and graduate students). If you drop below half time (5 credits or less for both undergraduate and graduate students) your loan funds will be canceled. If the funds have already been received they will be returned to the Lender.
GPA Hold. If after you have completed your fourth semester of undgraduate studies or you are a Graduate or Theological school student, and your GPA is less than 2.0 you will have to apply for a waiver through your respective Dean's Office. Contact the Financial Aid Office to learn how to begin this process.
The Business Office handles the receipt of your Student Loans only. If you have questions otherwise about your loans you will need to address them with the Financial Aid Office.
