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Exit information The consequences of a delinquent account We will attempt to contact you several times if your account becomes past due. This is documented in your records and is called due diligence. This attempt at contact is required by the rules which govern the Perkins program before we turn a defaulted account over to collection. If we don’t have a good address and we can’t find you we can’t work with you! It is our job to work with you to try and help you reestablish a payment schedule and bring your account current. There are categories of deferment and forbearance that we can apply in cases where your financial situation makes payments difficult. If we can’t find you or you don’t respond to our requests for payment or an explanation of why you have not paid, your account will be accelerated and turned over to an outside collection agency. Acceleration means making your entire balance due and payable as of the date of acceleration in a lump sum. According to your Promissory Note, collection fees of 30 percent for first placement and 40 percent for second placement will be added to your principal and interest balance. If you are sued by the agency, you will pay court costs and attorney fees in addition to collection fees. Then what happens? If the University proves you owe the debt, you will have a judgment entered against you which means your paycheck can be garnished or your personal property such as homes or cars can have liens placed on them until the debt is settled. A lien is a legal term which means that we have an interest granted by the courts in your property. If you sell liened property, those with a judgment are paid first from the proceeds.
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