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Although the majority of loans are guaranteed without incident, there are situations when a cancellation, rejection, denial, or revision may occur. These situations fall under the umbrella of "exceptions processing".
Cancellations are a lender/servicer function that result in a reduction of a loan’s guarantee. A cancellation may be for the entire loan or for one or more disbursements depending on a change in the student’s financial situation or financial aid package. A cancellation may also occur when the student’s enrollment status changes.
A loan may be rejected when the loan information is:
- incomplete;
- illegible; or
- in conflict with ISAC’s records.
When processing a loan, a denial may occur when the applicant doesn’t meet:
- federal eligibility requirements; or
- ISAC-specific requirements.
Revising a loan is the responsibility of the school. A revision may be necessary due to a change in the student’s financial situation or financial aid package. The following loan data may be revised by the school:
- certified loan amount;
- disbursement amounts;
- disbursement dates;
- grade level;
- loan period; or
- graduation date.
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