ACH: Automated Clearing House
The Automated Clearing House (ACH) Network is a highly reliable, efficient nationwide, batch-oriented, electronic funds transfer system governed by the National Automated Clearing House Association (NACHA) Operating Rules, which provide for the inter-bank clearing of electronic payments for participating depository financial institutions. The Federal Reserve and Electronic Payments Network act as ACH Operators, central clearing facilities through which financial institutions transmit or receive ACH entries.
Automatic Withdrawal Plan
The option to have loan payments deducted from a checking account electronically via Heartland ECSI, instead of having to mail payment.
Students who qualify for cancellation of their students loans (see your promissory note for specific eligibility requirements) must submit a completed cancellation form with the necessary verification to the Student Loan office for postponement of payments. Partial cancellation is granted annually, after the borrower has completed one full year of service as outlined in the promissory note. Once a year of service has been completed, the borrower must submit a cancellation form verifying the completed a year of service in order for the appropriate percentage of outstanding principal balance to be canceled.
Change of Address
Students must update their student loan billing address through Heartland ECSI, or by contacting the Student Loan office by e-mail at email@example.com, or by fax at (607) 255-6442, Attn: Student Loans. Borrowers with a Direct Stafford or Plus Loan must contact the Direct Loan Servicing Center at (800) 848-0979, or update online with Direct Loan Servicing. Informing other offices on campus (e.g., the Office of the Bursar, Alumni Office) of a change of address is not sufficient. Failure of the Student Loan office to provide bills, notices, or statements to borrowers does not alter a borrower's responsibility to make payments due on a loan as specified in the promissory notes.
Combining several federal student loans into one loan with a single lender. The consolidation lender pays off the balances on the other loans, giving the borrower the convenience of one monthly payment. Consolidating may or may not be advantageous. Borrowers should consider interest rates and deferments.
The university will gladly assist you to obtain other forms of credit by serving as a credit reference. If you want to have credit information released, please supply the Student Loan office with your written authorization.
Student loans are reported monthly to all four national credit bureaus. Just as late payments are reported, a late deferment or special arrangement form that is late will also result in being reported late.
A condition caused when a borrower fails to meet his or her responsibilities in loan repayment. This appears on a borrower's credit file for up to seven years. To avoid default, borrowers must stay in contact with lender(s), and maintain special arrangements when regular payment cannot be made.
A delay in loan repayment granted to borrowers engaged in certain qualifying activities (e.g., schooling, military service). By submitting a deferment form, payments on student loans may be postponed for up to a year in anticipation of a deferment. Deferments cannot be granted for periods in the future; only periods in the past can be deferred. Deferment provisions for each type of loan are listed in the promissory notes. The provisions vary not only according to the loan program, but also according to the date when the loan note was signed. Borrowers may have two or more loans under the same program with different deferment provisions.
Economic Hardship/Hardship Deferment
A condition that occurs when a borrower is under-employed, or monthly gross income is below the poverty line. With some loans, the borrower may be required to pay the monthly interest.
Certain programs require a borrower to be enrolled full-time as a regular student. A "regular" student is one who is enrolled for the purpose of obtaining a degree. For undergraduate students, this is at least 12 credits, for graduate students, it is at least nine credits.
The time between leaving school and the date a borrower must begin repayment of a student loan. The period begins when a borrower is no longer enrolled as a student, whether or not he or she has graduated. Borrowers will receive a notice during the grace period that indicates the due date of the first payment. On some university loans, interest accrues during the grace period (please consult the loan note). Interest on those loans is billed during the grace period.
At least six credits for undergraduate students and five credits for graduate students.
The source of the money used to issue a student loan. Some loan funds have more than one loan type based on when the loan was issued, and what interest rate will apply during repayment. Each loan type is identified on a billing statement by the name of the loan fund.
A company or institution that administers the loan and collects loan payments. May be either the loan holder or an agent acting on behalf of the holder. Cornell's loan service provider is Heartland ECSI.
National Student Clearinghouse
A national database that lenders, loan service providers, guaranty agencies, schools, and students can access to verify student enrollment and degree information.
Payments in Advance
Payments made against future installments that are applied to an account as if each were received on its due date. Payments in advance must be made in multiples of the normal monthly installment amount and must be accompanied by a letter from the borrower specifying which payments are being made. If we do not receive specific instructions in writing telling us to apply payments as payments in advance, they will be applied as prepayments and another payment will be due the following month.
For more information about installments, see "Repayment Schedule," below.
Permanent Total Disability
To be considered totally and permanently disabled, the borrower must be unable to engage in any substantially gainful activity because of a medically determinable impairment that is expected to continue for a long and indefinite period of time, or that will result in death.
A period of time during which the borrower is not billed for accruing loan principal and interest, which would be eligible for deferment or cancellation at the end of the eligible academic/employment/service year.
Accelerated repayments of the principal of the loan, typically made to realize a savings on interest. There are no penalties for prepaying. If a loan is repaid in full before the expiration of its grace period, no interest is charged (except on certain university loans). Payments in excess of regularly scheduled amounts are applied to the principal balance as prepayments. Unless the prepayment repays the loan in full, the next payment will be due the next month.
The outstanding amount of the loan on which the lender charges interest. As the loan is repaid, a portion of each payment is used to satisfy interest that has accrued, and the remainder of the payment is applied to the outstanding principal balance.
A legal contract requiring a borrower to repay a loan. When a borrower signs a promissory note, the borrower agrees to repay the amount borrowed under the terms outlined in the promissory note. Repayment follows the grace period or deferment period that begins after a borrower leaves school or drops below half-time status, even if the degree program is not finished.
A statement provided by the lender or loan service provider that lists the amount borrowed, the monthly payments, the amount due to principal and interest, and the date payments are due.
Temporary Total Disability
A borrower is temporarily, totally disabled if he or she, by reason of injury or illness, cannot be expected to attend an eligible institution or to be gainfully employed during a reasonable period of recovery form such injury or illness. A spouse is temporarily, totally disabled if he or she, by reason of illness or injury, cannot be expected to be gainfully employed and requires continuous nursing or other similar services during a reasonable period of recovery from such illness.