Effective Date: 07/01/00
Procedure Statement 15: Cancellations
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:
- Receives request for cancellation form on back of statement. Forwards to collection officer to review for cancellations, death, disability and bankruptcy.
- Collection officer determines if cancellation request is eligible.
- If rejected, notifies borrower, and files in borrower folder.
- If approved, determines if borrower is entitled to receive benefit.
There are two types of approved cancellation benefits:
- partial cancellation for certain employment services.
- total cancellation for death, bankruptcy, and total disability.
- Determines if borrower has a qualifying loan type.
- After verification of the qualifying loan type uses Federal Guidelines or the "U.S. Department of Education Annual Federal Register."
- Processes the cancellation transaction on the computer.
- Processes any necessary cancellation adjustments.
- Reviews account for correct due date and accruals.
- Files original authorized cancellation request in journal.
- Mails a copy of authorized cancellation request to borrower.