Section 674.62 - No cancellation for prior service-no repayment refunded(a) No portion of a loan may be cancelled for teaching. Head Start, volunteer or military service if the borrower's service is performed- (1) During the same period that he or she received the loan; or(2) Before the date the loan was disbursed to the borrower.(b) The institution shall not refund a repayment made during a period for which the borrower qualified for a cancellation unless the borrower made the payment due to an institutional error.52 FR 45758, Dec. 1, 1987. Redesignated at 59 FR 61413, Nov. 30, 1994 Authority: 20 U.S.C. 425 and 1067ee