Student Loan Repayment

Carl D. Perkins National Direct Student Loan

In compliance with the "due diligence" requirement for the collection of Perkins National Direct Student Loans (NDSL), every effort is made to collect outstanding loans. If a borrower is delinquent, it is not due to the borrower not being advised of the outstanding loan. Heartland ECSI, during the grace period, sends a loan statement at 90 days, 150 days, and 240 days. The borrower receives a bill from Heartland ECSI at least 30 days before the first payment due date. The Office of Student Accounts, in an attempt to assure compliance of loan payments, adheres to the following procedures:

Exit Interview

  Upon awarding of the loan, Heartland ECSI notifies three (3) credit bureaus of the loan.
  Personal Confidential Loan Interview Form is completed on-line via Heartland ECSI 
  During the interview, the folllowing information is provided:
  - "Your Rights and Obligations as a Perkins National Direct Student Loan Recipient" Bulletin
  - Loan repayment Schedule, Disclosure Statement plus a notation of the rate of interest on the unpaid balance
  - Cancellation/Postponement/Deferment Forms
  - Perkins NDSL Fact Sheet
  - If employed, name, address and number of employer, any other loans and corresponding amounts. If married, spouse's name, address, and number of employer.


When a borrower is separated from the University either through graduation, withdrawal, dismissal, or failure to register, the borrower is directed to Heartland ECSI to complete an exit interview. Each semester, the Financial Aid Office submits a list to the Office of Student Accounts identifying the individuals under these categories.

  Emphasis during the interview points to the following:
  - Loans must be repaid; it is not a grant;
  - Change of address/name to notify
  - Grace period;
  - Deferment/cancellation privileges of loans;
  - Accelerated payments;
  - The borrower's acknowledgement of loan correctness;
  - Any questions/problems, student is advised to contact the University Office of Student Accounts at 973-720-2677;
  - The amount of the payment, billing cycle, and the total amount of interest to be paid.
  Borrowers who fail to complete the exit interview on-line are mailed the documents under Term C by certified mail with return receipt and sent to student last known address. A transcript hold is placed on the school records until exit interview information is returned.

University Collection Procedures for Delinquent Accounts

  When a borrower is 60 days past due, a reminder letter is sent advising of the outstanding loan and of the late charge according to the Perkins NDSL regulations.
  A "Hold" is placed on the school records when the loan is 90 days past due, and the account is listed on the State of New Jersey Set-Off Individual Liability Program; in addition, the University sends a collection letter.
  If payment is not received or the reply is not satisfactory, the University sends a final letter 120 days past due. The letter advises unless payment is received in 15 days, the account will be turned over to a professional collection agency for the full amount due plus collection costs.
  The loans that are 120 days past due, the 3 Credit Bureaus are notified of the delinquent accounts.
  If the 120 days past due letter has no effect, the account is turned over to a professional collection agency for collection. If one agency fails to collect a delinquent account, it is transferred to another, with whom the University has a contract. The collection agency can locate any form of assets and debtor refuses to pay the account goes to legal action. The court imposes judgments and /or garnishments.


Borrowers 90 days past due have a "Hold" placed on their student records. Holds are released if full payment is received and/or 6 consecutive payments of the delinquent amount actually paid and received by the University.

Assignment of Accounts

When all collection procedures have been exhausted on an account without collecting the loan, or part thereof, the University may assign the note to the Federal Government for collection. Assigned loan funds are retained by the Federal Government, but the University delinquency rate is lowered.
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