Cancel Your Loan
Federal Student Financial Aid
How to cancel a Federal Direct Loan
You 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 CTU 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 Business Office in writing and by completing the attached form. Please complete a
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 Business Office within 14 days from the date you receive official notification that loan funds have credited to your CTU 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. The Business Office must receive the cancellation request in writing from the borrower.
- If you would like CTU to return loan funds that have been disbursed to us, or for which you have received a refund check, please complete a Request for the Return of Federal Stafford Loan Funds form. Please send the completed request form in person to Mimi Mateene in the Financial Aid Office at firstname.lastname@example.org or by fax at 773.371.5452
- If you are returning a refund check that was issued to you by CTU, please remember to include the check with the completed form. If you have already cashed that check and want to return funds that were disbursed to you, please send a check made payable to Catholic Theological Union in the amount you wish to return.
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 CTU account. Contact the Direct Loan Servicing Center for guidance on how and where to return your loan money. You can find their phone number on their website: 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.
- Catholic Theological Union, if you request, may cancel all or part of your loan within this timeframe for you, but we are not required to do so.
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. You should send your payment to Direct Loan Services (DLS). You can find their payment address on their website: https://www.myedaccount.com/ContactInfoEng.aspx.
- The borrower will be responsible for any interest that may have accrued and/or any loan fees.
Cancelling future loan disbursements:
- You (the borrower) must submit in writing your request to cancel future loan disbursements by contacting the Business Office prior to 10 days before the start of classes for the next semester(s). Please complete a Request for the Return of Federal Stafford Loan Funds form from the link below. Please send the completed request form in person to Mimi Mateene in the Financial Aid Office at email@example.com or by fax at 773.371.5452
- Once the loan has been disbursed for the next semester(s), then you must follow the procedures described above.
Click to download the Request for the Return of Federal Stafford Loan Funds form. (Adobe Reader required to view).