Can I Cancel My College Student Loan?
Did you know you have the right to cancel all or part of your federal college student loan disbursement for each quarter? You can simply submit a written request to the Office of Student Financial Aid Assistance within 14 days from the date you receive official notification that that your college student loan has funded and credited to your university or college account, or before the first day of classes, whichever occurs last. There will be an official notification sent to you no earlier than 10 days before the start of each term. For Parent PLUS College Student Loans, official notification occurs with the posting of the college student loan to your college student’s university account.
Your written request to cancel a Stafford, Perkins, or Grad PLUS college student loan may be submitted by e-mail from your financial aid administrator or as a handwritten, typed, or printed statement bearing an original signature submitted by mail, in person, or by fax. To cancel a parent PLUS college student loan, the parent borrower may submit a handwritten, typed, or printed statement having an original signature by mail, in person, or by fax.
Any cancellation request received within the 14-day period or before the first day of classes, whichever occurs last: No interest will be charged and college student loan fees will be returned to the college student loan holder. The school must receive the cancellation request in writing from the borrower (you for college student loans; parent borrower for parent loans). To cancel the college student loan disbursement, simply contact your financial aid office.
Canceling your college student loan disbursement, this could cause a balance to be due on your university account, which you will be responsible for paying. This is more likely to be true if excess funds or a credit balance have already been distributed via a check or a direct deposit to a bank account or your school account.
Repayment after the Designated Time Period: You cannot cancel your college student loan disbursement if the designated time period described above has already passed. Instead, you can simply repay the college student loan disbursement directly by contacting the college student loan holder (Direct College Student Loan Servicer for Federal Direct College Student Loans; College Student Loan Services for Federal Perkins College Student Loan). The borrower (you for college student loans; the parent borrower for parent student loans) will be responsible for any interest that may have accrued and any college student loan fees.
Canceling Future College Student Loan Disbursements:
You (the borrower) must submit in writing the request to cancel future college student loan disbursements by contacting the financial aid office prior to 10 days before the start of classes for the next term. For your convenience, the Report Your Changes form is available for this purpose. Once the college student loan has been disbursed for the next term, then you must follow the procedures described above.
Just remember it is up to you to make the choice to cancel if need be. No one else will do it for you. Do the responsible thing now to make the future easier for you.
