Why are my disbursed loan funds smaller than the amount listed on my award letter?
Updated October 19, 2022
When your loans are originated, you are charged a loan origination fee. An origination fee is a percentage of your loan amount charged by the lender for the processing of your loan. Federal student loans have an origination fee; therefore, the amount you may receive as a disbursement may be slightly lower than the amount you accept.
Although some private loans do not have origination fees, federal loans generally have a lower interest rate and are less costly overall. These fees are deducted from your award amount and the rest is disbursed to you.
If you are receiving a student loan for only one term at PCC, your loan will be split into two disbursements. You will receive the first half on the normal disbursement date. You will receive the second half of your student loan halfway through the term.