What happens after you receive your FAFSA loan offer

After you submit your FAFSA and your school processes it, you will receive a financial aid package that lists what loans, grants, and work-study are available to you. This package is not automatic money — it is an offer. You must actively accept the loans in writing before the school will disburse them to your account.

The acceptance process differs slightly by school, but the basic steps are the same: log into your student portal, review the loan terms, and confirm that you want to borrow that amount. Some schools require you to complete entrance counseling (a short online course about loan responsibility) before you can accept. Others require you to sign a Master Promissory Note, which is a legal document stating you will repay what you borrow.

You do not have to accept the full loan amount your school offers. You can accept part of it, decline it entirely, or accept some loans and decline others. The choice is yours, and you can change your mind before the school's deadline — usually sometime in May or June for fall enrollment.

Key Takeaways

  • Your financial aid package is an offer, not money that arrives automatically — you must log into your student portal and formally accept each loan.
  • Most schools require entrance counseling (a short online course) and a Master Promissory Note before you can accept federal loans.
  • You can accept part of the loan amount, all of it, or none of it, and you can change your decision before your school's deadline.
  • The school will disburse accepted loans directly to your account, usually in two payments per academic year (one per semester).
  • Loans do not appear on your credit report until after you graduate or drop below half-time enrollment, when repayment begins.

Where to find and accept your loan offer

Log into your student portal using your school email and password. Look for a section labeled "Financial Aid," "Aid Package," "My Aid," or "Student Center." The exact name varies by school. Once you are in that section, you should see a list of loans, grants, and other aid offered to you for the current academic year.

Click on the loan you want to accept. The school will show you the loan type (usually Stafford or Unsubsidized Stafford for undergraduates), the interest rate, the amount offered, and the repayment terms. Read this information carefully. If the amount seems wrong or you have questions, contact your school's financial aid office before accepting.

After you review the terms, you will see a button or checkbox to accept. Click it. The system will ask you to confirm. Some schools will then direct you to complete entrance counseling or sign your Master Promissory Note before the acceptance is final.

Entrance counseling and the Master Promissory Note

Federal law requires you to complete entrance counseling before you receive your first federal loan. This is a short online course — usually 20 to 30 minutes — that explains how loans work, what your repayment obligations are, and what happens if you default. You do this once per school, not once per loan. After you complete it, you do not have to do it again unless you transfer to a different school.

You will also sign a Master Promissory Note, which is a legal contract between you and the U.S. Department of Education. It states that you promise to repay the loan with interest, that you understand the terms, and that you will notify your school if you change your address or enrollment status. You sign this electronically through your school's portal. Like entrance counseling, you typically sign it once per school, and it covers all federal loans you take out there during your enrollment.

Your school will not disburse the loan until both of these steps are complete. If you are stuck, call your financial aid office — they can walk you through the process or tell you which step is missing.

When the money reaches your account

Once you have accepted the loan and completed entrance counseling and the promissory note, your school will disburse the funds. Disbursement usually happens in two payments per academic year — one at the start of fall semester and one at the start of spring semester. Some schools disburse quarterly if you are in a quarter-based system.

The school sends the money to your student account first. If there is a balance owed to the school (tuition, fees, room and board), the school automatically deducts that. Any remaining balance is paid to you, usually by direct deposit to a bank account you registered with the school, or by check if you did not set up direct deposit.

The timeline from acceptance to disbursement varies. Some schools disburse within days of acceptance; others wait until the semester officially begins. Check your school's financial aid website or call the office to find out when to expect the money.

Changing your mind or declining a loan

You can decline a loan at any time before your school's deadline, which is usually in May or June for fall enrollment. Log back into your student portal, find the loan you accepted, and look for a button to decline or withdraw your acceptance. Click it and confirm.

If you have already received the money and want to return it, you can do so, but the process is more complicated. Contact your financial aid office immediately. They will tell you how to return the funds and whether any interest has already accrued. The sooner you return the money, the less interest you will owe.

You can also change the amount you want to borrow. If your school offered you $5,500 but you only want $3,000, you can usually edit the amount in your portal before accepting. Some schools require you to contact the financial aid office to reduce the amount instead.

What to do if you cannot find your loan offer

If you submitted your FAFSA but do not see a loan offer in your student portal, there are a few possible reasons. Your school may not have finished processing your FAFSA yet — this can take several weeks. Your FAFSA may have been flagged for verification, meaning the school needs you to submit documents (like a tax return or proof of citizenship) before they can finalize your aid package. Or you may not have been offered a loan because your Expected Family Contribution was too high, or because you did not indicate on your FAFSA that you wanted to borrow.

Call your school's financial aid office and give them your name and student ID. They can tell you the status of your FAFSA, whether verification is required, and when you can expect to see your aid package. If verification is needed, ask what documents to submit and where to send them.

Understanding loan types and interest rates

The most common federal loans for undergraduates are Subsidized Stafford Loans and Unsubsidized Stafford Loans. With a subsidized loan, the government pays the interest while you are in school and during your grace period (usually six months after graduation). With an unsubsidized loan, interest accrues from the moment the money is disbursed, even while you are still in school.

Interest rates for federal loans are set by Congress and change each year. For the 2024–2025 academic year, the rate for undergraduate Stafford loans is 8.5 percent. This rate is fixed for the life of the loan. When you accept the loan, your school will show you the exact rate that applies to your loan.

Graduate students and parents can also borrow PLUS loans, which have a higher interest rate (currently 9.5 percent for the 2024–2025 year) and different terms. If you are offered a PLUS loan, review the terms carefully before accepting, as the repayment obligations are different from Stafford loans.

Frequently Asked Questions

Do I have to accept the full loan amount my school offers?

No. You can accept the full amount, part of it, or none of it. If your school offers $5,500 but you only need $3,000, you can change the amount in your portal before accepting. You do not have to borrow the maximum available to you.

What happens if I accept a loan but then decide I do not want it?

You can decline it before your school's deadline (usually May or June). Log into your portal and withdraw your acceptance. If you have already received the money, contact your financial aid office immediately to return it and avoid interest charges.

Will accepting a loan hurt my credit score?

No. Federal student loans do not appear on your credit report until after you graduate or drop below half-time enrollment, when repayment begins. Accepting the loan itself has no impact on your credit.

What if my FAFSA was flagged for verification?

Your school will not finalize your aid package until you submit the required documents, usually a tax return or proof of citizenship. Contact your financial aid office to find out what they need and where to send it. Once verified, your aid package will appear in your portal.

Can I accept a loan for one semester but not the other?

This depends on your school's system. Some schools let you accept or decline loans separately for fall and spring. Others require you to accept for the full year. Check your portal or call your financial aid office to see what options are available to you.