The timing of loan disbursement means that you need a buffer of funds to begin school and to pay your first month's rent/deposit at your new apartment.
It prevents 2 problems from happening -
1. What if you had planned to attend this school, but 2 weeks before orientation you get in from the WL of a school you prefer? School A doesn't have a way to give over your tuition money to school B, and would there be money you already spent from your loan earmarked for School A, would you have to give that back and re-start your financial aid paperwork for school B? Special scholarships awarded by school A
are not transferrable to school B.
2. There are unscrupulous individuals, usually at the college level or especially at the 100% online colleges, who would take the loan disbursement money and never show up at school. Paying the tuition portion of a loan directly from the feds to the school heads off this problem.
Whatever school you plan to attend, go to the financial aid page on their website and read it thoroughly.
You will be surprised how much information is there. Financial knowledge will be important to your future and as a part of your independence, as some of you may have had everything done for you by your parents until now.
I just went to the financial aid page of UTMB as an example and it clearly outlined all the steps you have to take to apply for Federal loans (subsidized and nonsubsidized). It tells you about other loans that may be available for disadvantaged students.
Financial Aid page UTMB
It tells you when loan disbursement occurs at their school (10 days before classes start).
None of the financial aid sources /loans
will give you more money than your estimated cost of attendance. Cost of attendance includes tuition, fees, health insurance, rent, and other costs of living like food, clothing and transportation. Some med schools are in a higher rent zone so the financial aid office will make your estimates based on the area.
If you are lucky enough to get some scholarship or grant that does not have to be paid back, don't be upset that you don't get "that money" in addition to the loans you were approved for. The financial aid office will subtract that from the loans you will take out to attend school. Don't be mad, be glad that there is less debt in your future.
This waiting period between acceptance and matriculation is a great time to educate yourself on the financial aspects of your upcoming years.
Use this time wisely before you are too busy in med school to figure it out.