Loan Cancellation
Federal Stafford Loan and Federal Perkins Loan Cancellation Rights – Students have the right to cancel all or a portion of the loan(s) and to have the canceled funds returned to the issuing loan account. You must notify OSFA in writing within 14 days of the date of the disbursement if you want to cancel all or a portion of the loan(s).
A loan origination fee of up to 3% of the loan will be assessed proportionately at each disbursement. This fee is used by the lender to offset the cost of the loans.
Half time enrollment status is required for student loans. If you drop below half time you may not be eligible to receive your student loan disbursement.
- Parent Loan for Undergraduate Students (PLUS) – Parents may borrow to pay educational expenses for dependent undergraduate students. The interest rate is variable, but cannot exceed 9%. With this loan, interest is not deferred and begins at the date of disbursement to the school. The parent will begin repayment as of the last disbursement of the academic year. The PLUS approval is based on your parent’s credit history. Students whose parents are denied a PLUS loan could be eligible to borrow up to $4,000 through the Unsubsidized Stafford Loan program.
- Grad PLUS Loan – Graduate students may borrow PLUS loan to pay educational expenses. The loan has a fixed interest rate of 8.5% but each lender offers various borrower benefits. Repayment begins within 60 days after the final disbursement of the loan, but can be delayed while you are enrolled at least half time. Interest will continue to accrue and be added to the principal balance.
- Alternative Loans for Undergraduate Students – Students may borrow private educational loans to pay educational expenses. The interest rate is variable and repayment options vary. They require creditworthiness and some may require a co-signer.
Under certain circumstances, the federal government will cancel (discharge) all or part of an educational loan. A summary of the circumstances under which student loans to non-teachers may be canceled is available on the U.S. Department of Education Web site. The Federal Student Aid Web site provides cancellation criteria for teachers' Federal Perkins Loans and Federal Stafford Loans. Loan cancellation criteria for social workers are provided on National Association of Social Workers Web site.
Charts that summarize criteria for Federal PLUS and Federal Stafford Loan Discharge/Cancellation and Federal Perkins Loan Discharge/Cancellation are on the U.S. Department of Education Web site.
NOTICE: The WSU Student Accounts Receivable Office administers Federal Perkins Loan, Nursing Loan, and Health Professions Loan cancellations. Please direct inquiries to the Loan Unit in that office: (313) 577-3656.