I have an approved ESTA but then realised I need a visa J1

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You don't need to "cancel" your ESTA. When you arrive to the US, you'll need to tell the CBP (immigration) officer that you're coming for your exchange studies/work and present the J visa in your passport.

You can use the ESTA if you intend to come to the US for a temporary visit as a tourist or occasional business meetings. Some people have multiple US visas in the same passport and use the appropriate visa for the visit each time, and that's exactly how it is supposed to work. You're fine.

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