Cancel note on small college in Germany (7)
I believe the answer is:
rescind
'cancel' is the definition.
(rescinding is a kind of cancelling)
'note on small college in germany' is the wordplay.
'note' becomes 're' (**).
'on' says to put letters next to each other.
'small' becomes 's' (abbreviation - e.g. clothes size).
'college' becomes 'c'.
'germany' becomes 'd' (international vehicle registration code).
're'+'s'+'c'+'in'+'d'='RESCIND'
(Other definitions for rescind that I've seen before include "Revoke (order)" , "Cinders (anag.)" , "Withdraw (decree)" , "Countermand" , "Cancel (regulation)" .)