I Can't Pay My Loan
- The full loan balance will be due immediately.
- Holds are placed on the student's University record that will prevent access to transcripts and future enrollment.
- The borrower will lose the right to forbearance, deferment, and cancellation benefits.
- The default status of the loan will be reported to credit bureau organizations.
- The borrower will lose the right to receive additional federal Title IV financial aid at all institutions that participate in the Federal Student Aid program.
- The loan may be assigned to a professional collection agency and all costs associated will be assessed to the borrower and added to the balance when placed with the agency.
- The loan may be assigned to the United States Department of Education.
If you are unable to make your scheduled monthly payments for any reason, contact Heartland ECSI at 1-888-549-3274 as soon as possible.
Delinquent tuition accounts for prior semesters are referred to Student Debt Management. If accounts are not paid in full, a 20% internal collection fee will be assessed on the unpaid balance. This is in addition to the 1.75% service charge per month all past due accounts are subject to. If your account is referred to a third party agency, you must pay any collection costs and attorney fees allowed by the Uniform Consumer Credit Code.
Stops on your Records/Registration
You will have a financial stop on your records if you owe the University an outstanding debt. The debt must be paid in full in order for the stop to be removed. Financial stops will hold transcripts, diplomas, registration, and drop/add. The debt could be a result of outstanding tuition, fees, returned checks, short-term loans or federal loans.
The University will refer accounts to contracted third party collection agencies. Please contact Student Debt Management to determine which agency is responsible for your account. If your account has been referred to a collection agency, the following actions will be taken:
No transcripts will be issued until the bill is paid in full
Service charges of 1.75% per month will continue to be assessed
Your account will be reported to the credit bureau
Your tax returns may be subject to offset in order to pay the debt
Please call the Bursar's office at 303-315-1800 or email firstname.lastname@example.org. They will direct you to the correct person to discuss your account. 2
Welcome to the University of Colorado Denver Entrance
Counseling Sessions for the Federal Perkins program, Federal Health Profession Loan programs and all Institutional Loan programs. A loan is a very significant responsibility to assume. Before accepting the loan, you are required to complete an entrance counseling session, and when you graduate or drop below half time, you are required to complete an exit counseling session. The loans processed by Student Debt Management are campus based funds and do not include Stafford Loans, Direct Loans or PLUS Loans.
A loan is money borrowed and you must repay your loans, even if you:
- Do not complete your education
- Are not employed upon completion of your studies
- Feel that the education you received did not meet your expectations
Generally, student loans may not be canceled or discharged due to bankruptcy. If you drop below half-time enrollment, even if you plan to return in the future, you will need to complete an exit counseling session. Once your grace period expires, you will have to repay your loan. You may prepay all or part of your loan at any time without penalty. Prepayment may substantially reduce your interest costs. If you are unable to make a payment once your grace period has expired, you may apply to determine eligibility for deferment. A deferment is a period of time during which your regular payments are temporarily suspended. No principal or interest is accruing during most deferments.
You can download all forms by choosing the "Downloadable Forms" link from ecsi.net
The school or billing servicer will determine your eligibility for any deferments. Continue making your payments until you receive written notification that you no longer need to do so.
Many loans only offer a hardship or forbearance option. This is a period of time during which your loan payments are temporarily reduced or suspended. You may request a hardship or forbearance if you are willing but financially unable to make your full payment. You are responsible for the interest that accrues during either the hardship or forbearance period. You may pay the interest as it accrues, or the entire amount at the end of the hardship or forbearance period. Whether you are eligible for a hardship or forbearance depends on the type of loan you have.
Notify Student Debt Management
immediately if you anticipate difficulty making a payment. Failure to pay all or part of a payment when due may result in the assessment of late charges. Your billing servicer may report your past-due status to the national credit bureaus and may initiate collection actions against you if you fail to make full, timely payments. The university may impose late charges if you do not make a scheduled payment when due, or if you fail to submit properly documented forbearance, deferment or cancellation requests to the university on or before the due date.
Defaulting on your student loan can result in:
- Damage to your credit rating
- Referral of your account to a collection agency
- Collection costs
- Garnishment of your wages
- Withholding of your state tax refunds
- Civil lawsuit, including court costs and legal expenses
- Loss of deferment entitlements and flexible repayment options
- Loss of eligibility for further financial aid
- Suspension of your professional license.
Loan consolidation enables a borrower with federal student loans from different lenders to obtain one loan with one interest rate and repayment schedule. Consolidation loans are intended for those who need greater flexibility in repayment. The following loan programs may be consolidated:
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Subsidized Federal Stafford Loans
- Unsubsidized Federal Stafford Loans
- Direct Plus Loans
- PLUS loans from the Federal Family Education Loan (FFEL) Program
- Supplemental Loans for Students (SLS)
- Federal Perkins Loans
- Federal Nursing Loans
- Health Education Assistance Loans
- some existing consolidation loans
Advantages of Loan Consolidation
- Extended repayment period up to 30 years
- Lower monthly payment amount
- Convenient single monthly payment
- May help protect your credit rating
Disadvantages of Loan Consolidation
- Extended repayment period adds to total interest expense
- Interest rates may be higher than the rate of original loan
- Federal Perkins Loan borrowers may lose eligibility to cancel their debt for full-time employment in certain occupations; refer to your original promissory note for more information on your cancellation benefits.
Eligibility for Loan Consolidation
- Must be in grace period or repayment status on all loans being consolidated
- Must not have another consolidation loan application pending
For more information, please click here.4
Cancellation for Years of Service
If the borrower is employed in one of the eligible areas, up to 100% of the loan may be canceled. Most loans are canceled incrementally:
- 15% canceled per year for the first and second years of service
- 20% canceled per year for the third and fourth years of service
- 30% canceled for the fifth year year of service
If you have questions, contact Heartland ECSI at 1-888-549-3274.
If you default on your Federal Perkins Loan, you may rehabilitate your defaulted loan by:
- Requesting a rehabilitation
- Making nine consecutive, on-time monthly payments
- Please note that you may only complete a rehabilitation one time over the life of your loan
The advantages of successful loan rehabilitation:
- You will qualify for the benefits and privileges of your original promissory note (i.e. deferment, forbearance, and cancellation benefits)
- The default will be removed from your credit history
- You will have an additional nine years to repay the remaining balance in full
If you are interested in loan rehabilitation, please contact Heartland ECSI at 1-888-549-3274.