If I decide I no longer need the funds after my loan money has been disbursed to me, can I cancel all or part of my loan(s)?

Within 120 days of the date your school disbursed your loan money (by crediting the loan money to your student account, paying it to you directly, or both), you may return all or part of your loan(s) to the U.S. Department of Education. Contact the Direct Loan Servicing Center for guidance on how and where to return your loan money.

You do not have to pay interest or the loan fee on the part of your loan(s) that you return within 120 days of the date your loan(s) is disbursed. If you received an up-front interest rebate on your loan(s), the rebate does not apply to the part of your loan(s) that you tell your school to cancel. Your loan(s) will be adjusted as necessary for the interest, loan fee, and rebate on the cancelled loan amount.