International Student Loan Disbursement

One of the most important aspects of an international student loan is understanding how the funds go from the lender to the school and then to you. This is known as international student loan disbursement. A common question among international students after they have signed and accepted their international student loan is what happens with the funds and how do I use them? Generally, what most likely may happen is that the lender provides the school with the money and the school then makes that money available to you. International student loans can be difficult to understand, so for a basic overview of the international student loan process, please follow this link.

What is Disbursement?

Disbursement basically means that your school is making the funds of your loan available to you after they have received it from the lender. Disbursement refers to the payout process of  funds from the borrowing source you have used. You may receive the funds in one disbursement or in a few. It depends on the lender and the loan.

Once the school receives the funds from the lender, they will disburse the loan. A common way that school may disburse loan funds is by crediting what is known as your student account. In turn, those funds may be used to pay your tuition and any other associated fees. There may be a remaining balance left on your account. If there is an extra amount, then that amount may be credited to you by another method, like a check, for example.

The graphic presented below will help illustrate the general disbursement process and how the funds of your international student loan move.

When Does the Disbursement Occur?

In case you’re wondering, you may be notified, in writing, of when you international student loan disbursement occurs by your school. This is what is referred to as a loan disbursement notice. The notice will include information like how much the disbursement amount is, and the form that they will be available to you in. (student account credit, check, etc.). Your lender will also most likely give you a loan disbursement notice as well.

The amount of time it takes to get your disbursement(s) will depend. The time may range anywhere from a few days to ten and thirty days or possibly even longer. It depends on your lender, school, and may even depend on what year in school you are and the start date of your semester or intake. We suggest contacting your school and your lender to find out more accurate information and how it pertains to when your loan disbursement will occur.

Your international student loans are disbursed throughout the academic school year. Depending on the school and the lender, it can be once, twice, or more. Check with your school and your lender to find out how many disbursements you will receive of your international student loan.

More Important Disbursement Info

Before the actual disbursement occurs, and before the lender makes the funds available to the school, the lender may have to verify some more information about you. One of the things that a lender may want to verify about you is that you are actually enrolled in the school and/or program that you need the funds for. The lender may also verify that the amount you requested is accurate in order to fund the education you are borrowing for. If your lender does this, they are simply making sure that all the information is correct so that your loan package is sufficient and appropriate for your international student loan needs.

As mentioned above, the individual details of international student loan disbursement vary school-by-school, lender-by-lender, and loan by loan. The information provided here is to help give you a better overall understanding of loan disbursement. For a better understanding of the international student loan process and basics, please follow this link.

Nomad Credit Can Help You Find Education Loan Options 

Understanding international student loan disbursement can be tough, but getting an international student loan can be even tougher. Nomad Credit is happy to help you navigate the difficult process and help you find the loan that you need to study abroad in the United States.

Nomad Credit can help you find your funding options. Please visit us at to search for your student loan (also known as education loan) options including Please don’t hesitate to email us at if you have any questions.

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