What happens to your Subsidized Stafford Loan?

[shopgirl4502]

This will be the first semester that I haven't gotten a Pell Grant for enough money to cover tuition and fees etc. So, I had to take out a Subsidized Stafford Loan. When you get a Pell Grant the money first goes to the school and they deduct tuition, fees and any other dues from the grant amount. Then a couple weeks later they send a check for the remaining amount (if any) to you. It is for living expenses etc...My question is: Does it work the same way with a loan? Do you get the remaining money sent in a check or is it automatically sent bak to the lender?Thanks!Thanks for the super quick answers.

[Cyndi]

you should get it back, I do

[anthill0303]

If you dont use all of your money from your student loan, it goes into a check and you usually pick it up from the cashier at your school...or where ever you go to pay tuition in the first place.

[levindis]

It works essentially the same as your grants where the money is disbursed to the school, your account is reconciled and the remainder is disbursed to you personally. Now the difference is that after you graduate you have 6 months before intrest is accrued and you have to start making payments. You can postpone this date by contacting the Direct Student Loans and asking for an extention or Forebearance.