Federal Direct Loans (Subsidized, Unsubsidized, and PLUS), NJ Class Loans, and Private Loans

All financial aid must be managed through the Financial Aid Office (if you’ve gone on your own to get a private 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.


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 due. Once the semester starts, loan disbursements are received once each week on Wednesday. Student Borrowers can monitor their student account through TreeHouse to see when their loan funds have been disbursed to their account. You can also contact the Student Accounts 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 completed an Entrance Interview – which is required for the Federal Direct Loans only, or another requirement expected by your lender).


All Federal Direct Loans, NJ Class Loans, and most Private 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 your Loans through the Financial Aid Office. If you have a private loan and your loan is disbursed via paper check, when we receive the check, we will contact you via your Drew email to stop by the Student Accounts Office to endorse the check, and the check will be deposited to your student account.


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.


All student loans will be disbursed in two (2) separate disbursements, one for the Fall and one for the Spring, both being disbursed after the respective semester begins. Your loan may be disbursed for slightly less than what you borrowed as the Department of Education retains lender fee from each disbursement (NJ Class also retains a fee from your disbursed loan). The Financial Aid Office will post your loan to your account and include the reduction for the fee established by the lender for your loan.


There are a few things that can keep the Student Accounts Office from receiving and applying loan funds to your student account. If the semester has already started and your loan funds have not arrived, please follow-up with your Financial Aid Counselor to see if there is something required of you in order to have your loan funds disbursed. 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 Direct Loan Borrower, you must first complete an Entrance Interview (requires FSA ID). Once your Entrance Interview is completed the Financial Aid Office will confirm and document it, allowing disbursement of your loan funds. As a first time borrower you may complete the Interview at anytime before the semester begins to prevent a delay in disbursement of your loan.
  • 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 your loans can be released for disbursement.
  • 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. here are Federal and Institutional requirements which govern your eligibility for Financial Aid (Graduate and Undergraduate students alike).  You may loose access to Federal, State, and Institutional Aid of you do not correct and maintain Satisfactory Academic Progress. The Financial Aid Office conducts a SAP review at the close of each term.  Students who have not met minimum requirements will be contacted by their Dean and/or Financial Aid as early as the close of your first semester to help you form a plan of academic progress.

The Student Accounts 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: finaid@drew.edu