Cancelling a Student Loan

How to cancel a Student Loan

A student may cancel their loan contract within 7 working days after the date the initial Loan Entitlement Advice (LEA) was issued by notifying MSD in writing.

If a student does not cancel their loan in writing within this timeframe they are considered to have accepted their loan contract.

The student may verbally request their loan contract be cancelled, however, once an initial LEA has been issued, they must confirm their request to cancel their loan contract in writing.

If a student has already used any component of their Student Loan they will have to pay back the money they have borrowed.

Waiving the Establishment Fee

The Establishment Fee is waived if a student pays back any money they have borrowed, no later than the end of the 7th working day, after the date the initial LEA was issued.

How to stop a Student Loan

If a student wishes to 'stop' their Student Loan more than 7 working days after the date the initial LEA was issued, their loan can be closed. The loan is not cancelled as it is considered they have already accepted their loan contract.

A student can also stop drawing down any money from their loan account and make any repayments to Inland Revenue when they are due or, pay off the total outstanding balance to Inland Revenue to clear the loan balance.