Sallie Mae loans can only be canceled or discharged under three circumstances: cancellation within 10 days of loan approval; total or permanent disability of the student; and in the case of death of the student, primary borrower or cosigner.
How to Cancel a Sallie Mae Signature Student Loan Within 10 Days
Retrieve your loan documents and refer to the section on "My Right to Cancel." Truth in Lending disclosure laws provide every Sallie Mae student loan borrower the right to cancel within 10 days.
Call Sallie Mae to cancel within 10 days of loan approval.
Copy your loan documents, write "CANCEL" on your signature page and mail a copy to Sallie Mae to further demonstrate that you have exercised your right to cancel within 10 days.
Do not cash or use any funds from the loan.
Notify your school that you are canceling your Signature Student Loan and instruct the school to return any funds it may have received to Sallie Mae.
How to Cancel a Sallie Mae Signature Student Loan Due to Disability
Students who become totally or permanently disabled may qualify for discharge and cancellation of a Sallie Mae student loan if they meet disability requirements.
You must meet the official federal disability definition which requires proving that you are unable to work and earn money because of an injury or illness that is expected to continue indefinitely, or result in death (see Resources).
Complete the official federal Discharge Application: Total and Permanent Disability form, administered by the US Department of Education (see Resources).
Ask your physician to complete the corresponding application section to certify your disability.
How to Cancel a Sallie Mae Signature Student Loan Due to Death
Get documentation ready. Sallie Mae will require information sent by mail in order to cancel and discharge a loan due to death. You will need to provide: city, county and state where the death occurred; date of death; name of funeral home; name of the executor or contact person; name of the father of the deceased and mother’s maiden name.
Sallie Mae may also request an original death certificate with the raised, embossed seal.
Call Sallie Mae to provide notification of death and for more information: 888-272-5543.
Be sure to review your original loan documents for details about your rights and your responsibilities.
You cannot cancel any type of Sallie Mae student loan due to inability to pay. Explore alternatives to prevent damaging your credit, such as federal loan forgiveness programs for teaching and public service, loan consolidation programs or refinancing with a new lender.
- student #3 image by Adam Borkowski from Fotolia.com