Reduce your debt by reducing your loan amount

Once you see your account charges or get your refund, you might decide you don’t need to borrow that much money. You can minimize your loan debt by reducing your loan or canceling it completely.

How to cancel or reduce your loans

You’ll get an email message about your right to cancel or reduce your loans. (If your parent borrowed a Direct Parent PLUS Loan, he or she will get a message as well.)

You have 14 days from the date on the message to complete the loan cancellation/reduction request form. Be sure to read the important information below before you complete the form. If you don’t want to cancel or reduce a loan, just ignore the message.

You should be sure to reduce or decline your loans through One.IU   before they post to your student account. If you get a refund before we receive your loan adjustment request, we’ll let you know how much you need to repay to IU, how to pay, and the deadline by which you need to pay.

If you don’t repay the required funds, your request will still be processed. Your student account will then have a balance due. To avoid problems, be sure to pay by the deadline.

Important information about cancelling or reducing your loans

You may use the loan cancellation/reduction request form to request a change to a federal student loan only if you’re the borrower. For example, a parent may not adjust a Federal Direct Loan on which their student is listed as the borrower. If you are not the borrower, your request will be denied.

You must submit the form no later than 14 days from the date on the notification email or letter stating that loans have been applied to your student account. Requests to cancel or reduce loans after 14 days will be denied.

We’ll process your request in a timely manner, and requests may not be reversed once processed. We may adjust your request if all or part of your loan has already been credited or refunded.

Unsubsidized loans will be reduced or cancelled before subsidized loans.

Cancelling the first loan disbursement will automatically cancel the second disbursement. Any refunds you’ve already received may need to be returned. If the cancellation or reduction leaves an outstanding balance in your student account, you must use personal funds to pay the balance in full by the due date. Failing to do so will result in late payment fees and other institutional penalties.