How Long Does It Take to Direct Deposit a TP Loan?

College is one of the most expensive investments that a family can make. The United States Department of Education offers many different forms of student loans, most of which fall under the banner of “TP loans.” How long does it take for you to receive your loan money, and what should you do if you think your TP loan is late? 

How Long Does It Take to Direct Deposit a TP Loan? It usually takes 7–10 business days for a TP Loan to be deposited into your account. However, if you’re in the military or work for the government, it may take a little longer because of the additional verification required.

“TP loan” is an umbrella term comprising many different kinds of government-funded student loans. While most types of TP loans go directly to the school, if your arrangement allows you to receive money in your bank account, you should receive your direct deposit within 7–10 days.

Most Stafford loans reach your college ten days before the first day of class. 

I’ve Heard of Student Loans, but What Is a TP Loan? 

The term “TP loan” is so obscure that, unless you are a lawyer, you probably haven’t heard of it. It is an umbrella term covering multiple types of student loans. The “TP” comes from Third Point Loan, LLC, an investment firm in New York (and Delaware). Government sites do not use the term “TP loan” when describing student loans, so this is an obscure term. 

The student loans that fall under TP loans include, but aren’t limited to: 

  • Stafford loans
  • Free Application for Federal Student Aid (FAFSA) loans 
  • PLUS loans (both parent and graduate) 

Unlike other types of loans, TP loans draw directly from the United States Department of Education. This means the government subsidizes a portion of a student’s college expenses. Sometimes, they will even cover interest! 

Exactly how that money is distributed varies with the type of loan. Some funds go to the students, some to the parents, but most of them go directly to the college. This means you will never directly receive money from the majority of TP loans. 

What Are the Limits on a TP Loan? 

There are many types of TP loans and each of them has different requirements. For example, to qualify for a Stafford loan, you (or your student) need to meet all of the following requirements: 

  • Be a U.S. citizen, permanent resident, or eligible as a non-citizen by other means. 
  • Submit the FAFSA form before the deadline. 
  • Be at least a half-time student. 
  • Must not default on any other loan. 
  • Not have an income above $125,000. 

Your credit score may or may not affect the type of loan you get. Most types of government loans will ignore your credit but will look at things like your criminal record. Keep your credit good and your record clean, and you should not have a problem getting a student loan. 

Who Pays Interest on a TP Loan? 

The amount of interest necessary to maintain a TP loan depends on the type of loan in question. There are two kinds of TP loans: subsidized and unsubsidized. This table will break down the two types of loans in terms of who pays interest:

Subsidized The government pays during these times: The student is in school at least half-time. Six months after the student leaves school (the “grace period”)A period of deferment (i.e. a postponement of loan payments) 
Unsubsidized You pay all interest. 

What type of loan you get largely depends on how you described your financial needs on the FAFSA form. For example, Pell Grants are only given to students in exceptionally bad financial situations. Please be honest on your FAFSA form so that the government can give you the student loan you need. 

What Should I Do if My TP Loan Deposit is Late? 

If you have a type of TP loan that goes straight to the school, chances are you will not have to worry about your loan being late. Your school will notify you of any such errors. Schools also have different timetables for fund disbursement. 

The most common reason that student loan funds are late is that someone didn’t fill out FAFSA forms correctly. Missing the deadline is another common problem. The issue is probably documentation. 

Calling your college’s financial aid office is the first step you should take if you think your payment is late or missing. If you need to contact the government about your TP loan, log in to your account to see what might have gone wrong. You can contact your student loan officer here

Is My Student Loan a TP Loan? 

If it comes from the government, probably. As stated earlier, TP loans go by many other names. If you know the name FAFSA, Direct Stafford Loans, PLUS loans, or the William D. Ford Federal Direct Loan Program, those are all TP loans. 


College is expensive, but TP loans can take some of the load off of families in need. After filling out FAFSA, financial aid may come in the form of any number of government loans. Stafford loans and PLUS loans are both types of TP loans. 

Your direct deposit should come 10 days before the start of the school year. Depending on your loan, you may not see the money in your bank account; many types of student loans go directly to the institution. 

The most important thing you can do to make sure your direct deposit arrives on time is make sure to fill your FAFSA form out correctly. Having good credit may also help you get your loan, in part depending on the type of loan. Most importantly, make sure you don’t miss the deadline! 

If you have a problem with your student loan, contact your college’s financial aid department. Failing that, you can contact the Department of Education at its official website. There are thousands of dollars on the line; it will be worth your trouble. 

Frequently Asked Questions(FAQ)

How long does it take for direct deposit to hit?

Direct deposit is an electronic transfer of funds from an employer or other source directly into an individual’s bank account. It is a convenient and secure way to receive payments, and typically takes one to two business days for the funds to be available in the account. However, the exact time it takes for a direct deposit to hit an account can vary depending on the financial institution, the timing of the deposit, and other factors.

How long does it take for a deposit to be approved?

A deposit typically takes one business day to be approved. Banks must verify the funds before they can be credited to the customer’s account. The exact time frame for a deposit to be approved can vary depending on the bank’s policies and the type of deposit being made.

How long does it take for direct deposit to go through ADP?

Direct deposit through ADP typically takes 2-3 business days for the funds to be deposited into the employee’s bank account. The exact timeline depends on the employee’s bank and the time that the payroll is processed by the employer. ADP offers a service called RollByADP which allows employees to access their pay up to two days earlier than with standard direct deposit.

How does direct deposit work if I get paid on Friday?

Direct deposit is an electronic transfer of funds from an employer to an employee’s bank account. When an employee is paid via direct deposit, the employer will send the funds electronically to the employee’s bank account on the day of pay, typically Friday. The employee can then access the funds the same day or the following business day.
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