Student Loans

Effective Date: 07/01/00

Procedure Statement 15: Cancellations


Policy

Cancellation transactions should be processed only as allowed by the respective loan fund guidelines. They must be preceded by receipt of the proper documentation.

The Student Loans Office:

  1. Receives request for cancellation form on back of statement. Forwards to collection officer to review for cancellations, death, disability and bankruptcy.

  2. Collection officer determines if cancellation request is eligible.

    1. If rejected, notifies borrower, and files in borrower folder.

    2. If approved, determines if borrower is entitled to receive benefit.

      There are two types of approved cancellation benefits:

      1. partial cancellation for certain employment services.

      2. total cancellation for death, bankruptcy, and total disability.

  3. Determines if borrower has a qualifying loan type.

  4. After verification of the qualifying loan type uses Federal Guidelines or the "U.S. Department of Education Annual Federal Register."

  5. Processes the cancellation transaction on the computer.

  6. Processes any necessary cancellation adjustments.

  7. Reviews account for correct due date and accruals.

  8. Files original authorized cancellation request in journal.

  9. Mails a copy of authorized cancellation request to borrower.