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