About Delinquency

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. 

Late Payments
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 attorneys' fees. The university will list your delinquent and defaulted loans monthly with four national credit bureaus. 

DEFAULT STATUS ON YOUR STUDENT LOAN CAN ALSO HAVE AN IMPACT ON THE FOLLOWING:

RELEASE OF TRANSCRIPTS
Cornell University policy prohibits the release of any records, including academic and financial aid transcripts, of any borrower who is in default on a student loan that Cornell administers. 

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 regarding delinquency or loan consolidation , please review the Collections FAQs , or contact the Collections Office .