How to cancel or reduce your loans after they’re applied
After your loans are applied to your student account, you’ll get an email message about your right to cancel or reduce your loans. You have 14 days from the date on the message to complete the loan cancellation/reduction request form. If you don’t want to cancel or reduce a loan, just ignore the message.
You may use the loan cancellation/reduction request form to request a change to a federal student loan only if you’re the borrower. For example, a parent may not adjust a Federal Direct Loan on which their student is listed as the borrower. If you are not the borrower, your request will be denied.
You must submit the form no later than 14 days from the date on the notification email or letter stating that loans have been applied to your student account. Requests to cancel or reduce loans after 14 days will be denied.
Important information about canceling or reducing loans
If you get a refund before we receive your loan adjustment request, we’ll let you know how much you need to repay to IU, how to pay, and the deadline by which you need to pay. If a cancellation or reduction leaves an outstanding balance in your student account, you must use personal funds to pay the balance in full by the due date. Failing to do so will result in late payment fees and other institutional penalties.
We’ll process your request in a timely manner, and requests may not be reversed once processed. We may adjust your request if all or part of your loan has already been credited or refunded.
Unsubsidized loans will be reduced or cancelled before subsidized loans.
Cancelling the first loan disbursement will automatically cancel the second disbursement. Any refunds you’ve already received may need to be returned.