Policy: Right to Cancel Loans

Document Number: 2.038
Title: Right to Cancel Policy & Procedures
Effective Date:
Revised Dated: 10/2/18; 10/12/18

POLICY

Federal regulations allow student loan borrowers up to 14 days after disbursement of funds to cancel or reduce the loans. The following describes the process to request a cancellation or reduction of student loans.

To request changes to your loan(s), please complete a Loan Change Request Form and return it to the Office of Financial Aid.

If the cancellation results in a balance due on your student account, payment will be required immediately.

If you repay your loans directly to the Direct Loan Servicer, your loan account will be credited as a repayment on the loan rather than a reduction/cancel. This means that your loan fees will not be reduced, nor will it renew you academic year eligibility. If you had already borrowed your academic year limit, your will not be able to re-borrow this amount later.

Procedures:

• Students are notified of their Right to Cancel via e-mail on their award letter. Award letters are e-mailed when a student’s financial aid is packaged.
• The Office of Financial Aid will cancel or reduce loan as requested by the student on the Loan Change Request Form. This is done through the Banner Processes.
• The Office of Financial Aid will notify student and business office via email when the process has been completed.