It is possible to get less money than the loan amount you borrowed primarily because of fees and deductions taken upfront by the lender. For example, loan origination fees or processing fees may be deducted from the loan disbursement. This means the amount you actually receive is the loan amount minus these fees. Additionally, you may not qualify for the full loan amount requested, which results in receiving less. Other reasons include certain types of loans such as federal student loans where origination fees are common, and the loan amount stated includes these fees that reduce the actual funds you get. In summary, while the loan amount is the total you agree to repay, upfront deductions and fees reduce the amount disbursed to you. This is different from the overall repayment amount, which can be higher than the loan amount due to interest accrued over time. References:
- Loan origination fees deducted from disbursed amount
- Qualification limits and fee deductions
- Interest causes repayment amount to be more than borrowed, but does not affect initial disbursed amount
If a more detailed or specific explanation is desired, feel free to ask!