One important aspect of taking out any loan is knowing about your rights to cancel it if you have second thoughts, or if you find better terms to borrow money elsewhere. Here's what you need to know:
Timeframe
Federal regulations give you at least three business days after you receive your final disclosure (in your loan packet) to cancel your loan without any penalties. Fortify generally aims to increase this period for our borrowers, to give you a longer cancellation window; however, please check your loan document for your specific cancellation window.
Given the time-sensitive nature of loan cancellation rights, it's very important to act promptly if you wish to exercise this option. Delaying your cancellation request beyond the stipulated time frame could result in forfeiting your ability to cancel.
How to cancel your loan
To cancel your loan, you must notify Fortify in writing by emailing [email protected] within the written cancellation window. If you encounter any issues, please contact Fortify support and we’ll be happy to help.
Please follow any instructions given by Fortify, which may include providing additional written documentation if your legal cancellation window has already passed.
If there has been a partial disbursement, work with your school's financial aid office to understand their refund policy and ensure they know about your withdrawal or cancellation.
Consequences of cancellation
If you decide to cancel your loan within the specified period, several important outcomes will occur:
No financial penalty: you will not be charged any fees or penalties for canceling the loan. This includes application fees, origination fees, or any other charges related to the loan agreement.
Non-disbursement of funds: If you cancel within three business days of receiving your final disclosures, no funds will be disbursed to your school on your behalf. This means you will not be responsible for repaying any portion of the loan amount.
Can I cancel my loan outside of the cancellation period?
You may still be able to cancel your loan even if the cancellation window has expired. To find out if this is possible, please contact Fortify support and we’ll be happy to help you.
Partial disbursement and withdrawal
In some cases, Fortify may cancel your loan upon your request even if the loan was partially disbursed. If this occurs, and you decide to cancel the remaining amount or withdraw from school, the situation will be handled according to specific protocols:
Your school’s refund policy: The refund of any disbursed funds will depend on your school's refund policy. Each institution has its own guidelines for how much of the loan can be refunded based on the timing of your withdrawal. These guidelines are also influenced by state laws, so it’s important to be aware of any regulations that apply to your specific situation.
Coordination with Fortify: Fortify will work closely with your school to manage the return of any disbursed funds. This helps to ensure that funds are returned appropriately and that any necessary adjustments are made to your loan balance.
Reduction of your loan balance: Any amount returned by the school will be applied to reduce your loan balance. This helps ensure you are not responsible for repaying funds which were unused for your education.
Questions
If you have more questions, please reach out to us and we'll do our best to help.