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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. Campus Partners,
during the grace period, sends a loan statement at 90 days, 150 days,
and 240 days. The borrower receives a bill from CP at least 30 days before
the first payment due date. The Bursar's Office, in an attempt to assure
compliance of loan payments, adheres to the following procedures:
Exit Interview
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Upon awarding of the loan, Campus Partners
notifies three (3) credit bureaus of the loan. |
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Personal Confidential Loan Interview
Form is completed prior to proceeding with the interview |
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During
the interview, he/she is given a package containing a copy of the
following documents: |
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Promissory note signed by student |
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Loan repayment Schedule, Disclosure Statement
plus a notation of the rete of interest on the unpaid balance |
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"Your Rights and Obligations as a Perkins
National Direct Student Loan Recipient" Bulletin |
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Cancellation/Postponement/Deferment Forms |
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Perkins NDSL Fact Sheet |
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If employed, name, address and number of employer,
any other loans and corresponding amounts. If married, spouse's name,
address, and number of employer.
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When a borrower is separated from
the University either through graduation, withdrawal, dismissal, or failure
to register, the borrower is directed to the Bursar's Office for an exit
interview. Each semester, the Financial Aid Office submits a list to the
Bursar's Office identifying the individuals under these categories.
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Emphasis
during the interview points to the following: |
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Loans must be repaid; it is not a
grant; |
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Change of address/name to notify CP |
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Grace period; |
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Deferment/cancellation privileges of loans; |
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Accelerated payments; |
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The borrower's acknowledgement of loan correctness;
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Any questions/problems, student is advised to contact
the University, Bursar's Office at 973-720-2677; |
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The amount of the payment, billing cycle, and the
total amount of interest to be paid. |
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Borrower
signs exit interview Check List and Summary Loan Sheet for Perkins
NDSL after the interview. |
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Borrowers
who fail to attend the exit interview are mailed the same 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. |
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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. |
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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. |
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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. |
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The loans that are 120 days past due, the 3 Credit
Burasus are notified of the delinquent accounts. |
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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 loacate any form of assets and debtor refuses
to pay the account goes to legal action. The court imposes judgements
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.
When all collection procedures have been exhausted on an account without
collecting the loan, or part thereof, the Univerity 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.
TO VEIW YOUR ACCOUNT STATUS :
Please click on campuspartners.com
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