Cancelling Federal Direct Loan
How to cancel a Federal Direct Loan?
Students have the right to cancel all or part of your federal loan disbursement for each semester within 120 days of disbursement. Please be advised that cancelling your loan disbursement could cause a balance to be due on your student account which you will be responsible for paying.
Loan cancellation before disbursement:
- Before your loan money is disbursed, you may cancel all or part of your loan at any time by notifying the Financial Aid Office in writing via email. The request for the return of federal Stafford loans must include:
- Full name
- AUC student ID
- Type of loan to cancel (subsidized, unsubsidized, Graduate Plus/Parent Plus)
- Term (spring/fall semester)
- The loan amount
Cancellation request received within the 14-day period or before the first day of classes, whichever occurs last:
- You may cancel all or part of your loan if you notify the Financial Aid and Student Accounts Office within 14 days from the date you receive official notification that loan funds have credited to your student account, or before the first day of classes, whichever occurs last.
- No interest will be charged and loan fees will be returned to the loan holder. AUC must receive the cancellation request in writing from the student.
Cancellation request after the 14-day period but within 120 days of disbursement:
- You may cancel all or part of your loan by returning the funds yourself to the U.S. Department of Education within 120 days of the loan disbursement date. The disbursement date is the date the funds were applied to your AUC student account. Contact the Direct Loan Servicing Center for guidance on how and where to return your loan money. You can find loan servicer information at: https://www.myedaccount.com/ContactInfoEng.aspx.
- You do not have to pay interest or the loan fee on the part of your loan(s) that you return within these time frames.
- AUC is not required to cancel all or part of your loans within the required timeframe. However AUC FA office may do so as per your request.
Repayment AFTER the designated time period - more than 120 days after disbursement:
- You cannot cancel your loan disbursement if the designated time period described above has already passed (More than 120 days after disbursement). Instead, you can make a payment. The student will be responsible for any interest that may have accrued and/or any loan fees.
Cancelling future loan disbursements:
- You (the student) must submit in writing the request to cancel future loan disbursements by contacting the Financial Aid Office prior to 10 days before the start of classes for the next semester(s).
- Once the loan has been disbursed for the next semester(s), then you must follow the procedures described above.