Disbursement of private student loan funds depends on whether you’re borrowing for school or refinancing existing loans.  For in-school private student loans, funds typically go directly to your school for tuition. The school then provides the remaining loan funds to you for other educational expenses like housing. The school sets the disbursement date, usually at the beginning of the semester. Applying early is advisable to avoid any unexpected delays.  For student loan refinancing, no new funds are disbursed. Your new private lender pays off existing loans and replaces them with new terms. This typically occurs within a few days, but always check with your lender(s).