I applied for a private student loan over two months ago. It has taken an unbelievable amount of time to process the loan, but Monday my rep called me and informed me everything was complete. She said the check would be sent out in four days and arrive in up to seven days. My concern is how long will the bank hold the funds. It is important that I have access quickly. I have been told the bank will make a part of the funds available immedietly, and that because the check is coming from one bank and going to another, my bank would not hold the funds as long as they would if it were a personal check. The total amount is for $27,500.00. Will the amount factor in in regards to the time frame in which they will hold the funds. I am hoping at least part of the funds will be available right away.

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Originally Posted by jspencer30

I applied for a private student loan over two months ago. It has taken an unbelievable amount of time to process the loan, but Monday my rep called me and informed me everything was complete. She said the check would be sent out in four days and arrive in up to seven days. My concern is how long will the bank hold the funds. It is important that I have access quickly. I have been told the bank will make a part of the funds available immedietly, and that because the check is coming from one bank and going to another, my bank would not hold the funds as long as they would if it were a personal check. The total amount is for $27,500.00. Will the amount factor in in regards to the time frame in which they will hold the funds. I am hoping at least part of the funds will be available right away.

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jspencer30 -

I appreciate your frustration with the loan funding process... I've been there! Okay, to be certain of how long your bank will hold the funds until they are 100% available, I would contact your bank's branch manager. My bank, for example, will allow a certain portion of a check in excess of $10,000 to be accessed the same day. They increment another portion of the money the following day and somewhere on the 3rd or 4th business day, the entire portion is then available.

Just explain to the bank manager that your check is for $27,500 and that you were wondering how much of that would be available the day you deposit it and how long it would take before all of the funds are available. In other words, don't speculate, go directly to the bank to find out the information you need to know... they'll be able to tell you if you inform them of the amount.

Lastly, if you are stressing about the funds being available because you need to pay your tuition bill ASAP, talk to your school's Financial Aid office / Bursar's office and explain to them that the money is en route but that you were held up due to the loan application process. In this current economy, with many banks writing down bad debts in the way of loans, it's probably slowing down the process. Your school will work with you... ask them to give you some time.

Or maybe you are looking to use that money for something else, in which case, those are the breaks, my friend.