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What Makes a Student a First-Time Loan Borrower With a 30-Day Disbursement Delay?
Per federal regulations, first‑time loan borrowers are subject to a 30‑day delay before their federal student loan funds can be disbursed.
Important Disbursement Rule
First‑time borrowers cannot receive loan disbursements until 30 days after the start of their courses.
To avoid additional delays, students must also be:
- Enrolled in at least 6 program‑applicable credit hours (half‑time enrollment), which is the minimum requirement to receive Federal Direct Loans
Who Is Considered a First-Time Loan Borrower?
A student is considered a first‑time loan borrower if any of the following apply:
- The student (or parent borrower) is receiving Federal Direct Loans or PLUS Loans for the first time
- The student (or parent borrower) has never borrowed a loan or PLUS loan at any prior institution
- The student (or parent borrower) previously borrowed a loan at another institution but has fewer than 30 earned credit hours, including transferred credits
In all of these situations, the student will experience a 30‑day delay in loan disbursement.
When Does the 30-Day Delay Begin?
The 30‑day loan delay begins on the first day of the student’s academic term.
Example:
- If a student’s term begins on August 17, 2025, loan funds will not be requested until September 17, 2025.
Required Steps for First-Time Borrowers
All first‑time borrowers who wish to receive a Subsidized Direct Loan and/or Unsubsidized Direct Loan must complete the following requirements:
Both steps must be completed through the Federal Student Aid website.
(Financial Aid > Loans)