Canceling a loan or a loan disbursement is a lender function that results in a reduction of a loan’s guarantee. There are a number of reasons why it may be necessary to cancel a disbursement:
- The student transfers to a new school and must have his or her loan eligibility re-determined at the new school.
- The student no longer wants the loan or disbursement.
- The loan proceeds are not negotiated within 120 days after disbursement.
- The student withdraws or is otherwise no longer eligible for the loan or disbursement.
Should a school need to cancel a loan or disbursement, a request and the loan proceeds must be sent to the lender. The lender will then request that ISAC cancel the loan or a disbursement.
Reloading a Guarantee
If the school discovers that a loan or disbursement was cancelled in error after the disbursement of any loan proceeds, the lender should be contacted to request the loan or disbursement be reloaded with ISAC.
A reload will not revise any of the guarantee data used for disbursement, but rather restores the guarantee data in ISAC’s guarantee system.
Reinstating a Guarantee
If the school discovers that a loan or disbursement was cancelled in error prior to the disbursement of any loan proceeds, the lender should be contacted to request the loan or disbursement be reinstated with ISAC.
A reinstatement will revise the original guarantee date and the disbursement dates if necessary. A reinstatement can be requested only if:
- the full loan was originally cancelled; and
- no disbursements have been made.
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