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<strong>Disbursement date</strong> – The date loan funds are issued to the school or escrow agent. For a paper check, the disbursement date is the date the check is issued. For an electronic funds transfer via ACH or wire, the disbursement date is the date the funds are transferred from the lender to the school or escrow agent. (Note: under limited circumstances, a lender may also issue funds directly to the borrower.)
maturity transformation (GO)<br />The activity of banks and building societies of borrowing short and lending long. This practice is possible because of the slow changing habits of borrowers and the general law of averages which ensures little variation in the total amount deposited.
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