Not always. If a federal student loan reduction is required based on the above calculation, the student's loan is reduced and the amount of the reduction is returned to the lender. That amount is charged to the student’s account. For example, if a student’s loan had to be reduced by $1,000 that amount would be returned to the lender, reducing the student’s overall loan debt. However, the student would owe the $1,000 to UNC Charlotte, immediately.