How to cancel a stafford loan
Things You'll Need
Verify whether or not you have received written notification from your college of when the loan money will be credited to your account. The college will also send notification to students with a private student loan. This usually can be done by checking online at the email address that was given to you by the college (ex. firstname.lastname@example.org) or by logging onto your college's financial aid office website.
Compose a letter to your college financial aid office informing them that you are canceling the full amount or a portion of the loan. Be sure to include your full name, student ID number and the type of loan (for example, direct loan or Stafford loan) and the amount of the loan. Call your bank or lender for
cancellation procedures and review your contract if you have a private student loan.
Submit a written request to cancel the loan to your financial aid office. The request to cancel the loan must be made within 14 days of the date your school sends you notice that the loan will be applied to your account or by the first day of the payment.
Contact the college's student accounts office and confirm that all or a portion of the loan was returned to the lender. Check the account balance.
Verify with lender. You can contact the U.S. Department of Education's Direct Loan department through their website, or call 800-848-0979. Review your application and promissory note. The lender contact information should be listed on your application. Call them with additional questions.Source: ehow.com