Exact Answer: First day of the quarter or semester
Financial aid in the US is the funding provided exclusively for post-secondary students. Financial aid is provided by the state, educational institutions as well as by private agencies. To apply for the funding, the student is required to fill in a free application and they are considered eligible for the funding.
The funds are awarded in different forms such as scholarships, study loans, work-study, and grants. The agency providing the funds set up the application process and uses the data provided during the application to determine financial need and thus eligibility.
How long does financial aid take to direct deposit in the US?
Once you are considered eligible for financial aid, you are required to set up for a direct deposit under the Direct Deposit Transfer Setup. This set up must be completed at least five days before the money is deposited in your bank account. The tuition money and other charges will be deducted before the money is deposited in your account.
The money should be available in your bank account on the first day of the quarter or semester. However, if you have not signed up for a direct deposit, the check will be mailed to your registered address. The financial aid checks will reach you within 10 days. It is thus very important that you ensure you present your correct address when registering for the aid to prevent any delays.
If you happen to lose your check or fail to receive it within 90 days, you can present the check affidavit and get a replacement. If you receive the loan but decide you do not need it, you can cancel it within 120 days where you will not be charged any fees or interest.
Why does it take this long for financial aid to take to direct deposit in the US
The funding you receive will affect the amount of time and how you will receive your money. For grants and student loans, your school will use your financial aid money to pay for your tuition, fees and room and board if you live on campus, the remainder of the money is deposited into your bank account for other expenses.
If your financial aid is in the form of work-study, then you are supposed to be paid monthly. The payment will be made directly to your account or your school can find a way to pay for your education charges, fees, tuition and other charges on your student account without depositing the money in your account.
If you are a parent paying for your child’s fees through the parent Plus Loan, the financial aid will be disbursed into your child’s school account to pay for the charges such as fees, room board and other charges. The remainder of the money will be sent to you by mail but you have the choice for the remaining money to be sent to your child.
The amount of time the money takes to get into your account will depend on your financial aid and the method you use to receive the money. For the student not registered for direct deposit, postal errors will cause delays in your receiving the money.