My previous experience was similar to yours in that the school took out tuition and fees and cut me a check for booze, TVs, rent, etc. it was free money though, and I didn't owe anything to a lender. I haven't experienced any cases of the school acting as lender, but I do know at UT you have the option to do a payment plan. In my view, this isn't radically different than paying upfront, since the first payment is due before classes start and must be at least half of what is owed and the last payment is due before the following semester. This seems more a convenience for parents who are paying out of pocket for their children. I have seen where the school is willing to offer an "emergency loan" so students can buy books in cases where their funds are delayed, but at UT it is only up to $500.