As a borrower, you are responsible for repaying your loans. As a lender, Cornell is responsible for collecting on those loans. Cornell employs a collection staff that reviews all delinquent accounts and contacts the borrowers of those accounts.
If your situation prevents you from adhering to the repayment schedule, you should contact the Student Loan office. Cornell is committed to assisting its borrowers in every possible way, but must follow strict procedures in collection efforts.
If you fail to make a scheduled payment and do not contact the Student Loan office, Cornell will assume that you are unwilling to fulfill your obligation and may declare your loan to be in default. The university reserves the right to accelerate the maturity and demand immediate repayment of the entire principal balance and any interest due on any loan in default. If it becomes necessary to refer a loan for collection or legal action, you will be held responsible for reasonable costs of collection and/or attorney fees. The university will list your delinquent and defaulted loans monthly with the four national credit bureaus.
Any Perkins (NDSL) Loan in default for two or more years may be assigned to the U.S. Department of Education for collection. At that time, the entire balance of the loan, plus interest, becomes payable, and the borrower's obligation is transferred to the federal government.