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Returning Unneeded Loan Funds

Returning anticipated unneeded Federal Loan Funds

If you anticipate having unneeded funds for a future disbursement (not applied to your tuition bill yet), contact your financial aid counselor to cancel or reduce the upcoming disbursement at least fifteen days before your semester begins.

Return of unneeded Federal student loan funds within 120 days of disbursement

Students or parents may also request returning Federal Direct Loan funds you’ve received in the form of a refund check up to 120 days after the disbursement date (date loan is applied to tuition).  Funds returned within 120 days of disbursement will have applicable interest accrued and loan fees eliminated.

  1. Complete the Return of Loan Funds Form and send to finaid@musc.edu.

  2. Upon receipt of the form, the loans will be cancelled and returned to the lender.

  3. Since the aid was already applied to your student account, you will be billed back the portion of the loan you selected for return.

  4. Your financial aid counselor will email you when the return is complete, so you can make your payment.

  5. Plan ahead. Please do not wait until the last minute to submit your Return of Funds Form. Allow up to two weeks for processing the Return of Loan Funds through the school.

Returning unneeded Federal Loan Funds to a Loan Servicer

If you are returning a borrowed amount more than 120 days after disbursement, the Financial Aid office may not send back amounts on your behalf. You will need to make that payment directly to your loan servicer. Your loan servicer is assigned to you by the US Department of Education. Loan Servicer information is listed in the National Student Loan Data System.

Returning Private Loan Funds

Borrowers of Private Loans should contact their Lender directly on their specific procedure of returning unneeded loan funds to them.