About Delinquency

As a borrower, you are responsible for repaying your loans. As a lender, Cornell is responsible for collecting on those loans. You learned about responsible borrowing in your entrance interview when you first received your loan and during your exit interview if you left school or dropped below half-time enrollment. If you are having difficulty making your required payments, you may be eligible for repayment options that suspend or lower your required payments. See Deferments and Cancellations for more information. You are responsible for submitting the appropriate requests on time, and you may lose benefits if you fail to file your request on time.

For information on repaying federal loans (Direct Loan, Stafford, PLUS or Perkins), see How to Repay Your Loans or Get Help Choosing a Student Loan Repayment Option on the Federal Student Aid website.

For institutional loans, consult your promissory note for repayment options.

If you have questions about repayment options or whether you qualify for a benefit on a federal Perkins or institutional loan, see the ECSI website or contact an ECSI customer service advocate at (888) 549-3274, Monday to Friday, 7:30 a.m. to 8:00 p.m. EST.

Late Payments

If you fail to make a scheduled payment and do not contact Hearland ESCI, 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.

Other Impacts of Default Status

• Readmission to Cornell: Any borrower in default on a student loan will be refused readmission to Cornell until the loan is returned to current status.

• Future Financial Aid: Federal regulations prohibit any student in default on a federal student loan from receiving additional financial aid from any federal program.

Perkins (NDSL) Loan Default

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.

Note: For additional information about delinquency, please review the Delinquent FAQ, or contact us.