Declining a Student Loan

If you are reading this article, there is a good chance that you are in college or thinking about going to college. A college education is not only going to give you a good platform to start your professional future on, but it also will help you develop a lot of meaningful and lasting relationships. However, as you probably know, a college education can be very expensive, and it is important that you are properly prepared for that expense. Student loans are often necessary for a lot of people that are looking to complete their college education.

While scholarships, grants and other sources of financial aid are not going to have to be paid back, student loans are true loans and the money that you borrow will have to be repaid to the lender. Therefore, it is important that you put some thought into your financial responsibility and future before getting a student loan credit check and opening one of these loans. In some cases, people will think that they are prepared to open a student loan and then will decide not to, or they will find a better source of the financial aid that they need. In these cases, you may need to learn about the proper procedure to decline a student loan.

Declining Government Student Loans

The steps that you will have to use to decline a student loan will depend on the type of loan that you are opening and where in the process you might be. If you are opening government loans, there are going to be specific outlined steps that you will have to follow. Some of the steps are going to depend on the school that you are attending and the financial aid office that they run. It is typically much easier to decline a student loan if you are just beginning the process.

If you have applied for a student loan and the school has notified you that the loan has been approved, you typically will at that point have the ability to either accept or decline the money. If you decide to decline, you should be able to simply click a decline button on your account and you will no longer be responsible for that loan. If you accept, declining in the future may become a bit more complicated. As time passes and if the money actually falls into your account, you will then be subject to the repayment that is negotiated by the government. You may even have to pay a bit of interest if you accept the money and then decide you do not want the loan.

Declining Private Loans

If you are looking for a private student loan, the rules for declining the loan may be a bit different. Private loans are going to be offered by independent banks and financial institutions and the money is not tied to the government. In these cases, students who decide to decline loans will have to learn the procedures that have been set by the bank or the lender. You may want to learn about these procedures before you decide to open the loan in the first place.

Declining a student loan may be a rare occurrence, but it is something that happens and people who decide to decline their loans will have to learn the steps carefully. If you have further questions you will want to talk to your financial aid office or the lender that gave you the loan. After getting the information you need, you should be able to decline your loan with few to no problems.