The video spread like wildfire on social media ... and several black student organizations at Cornell called for the school to take action.
Panza -- who signed his national letter of intent in February -- is no longer a part of the Big Red's football program as a result of the video, the Cornell Daily Sun reports.
"I am heartbroken I have hurt people; those I know and those I do not. I take full responsibility for my actions," Panza told the Sun.
"I do not believe that my language that night aligns with who I have tried to be as a person, the values I live by or the manner in which I have conducted myself as an athlete."
Panza continued ... "I plan to better educate myself on the issues of racism and injustice in America, as I want to be part of the solution and not the problem."
"The label 'racist' is not something I can live with and I will work to prove that every day for the rest of my life. It is my humble hope that I will come out of this incident as a better ally, better friend and better person."
Panza says he hopes to get a second chance with Cornell ... but the school has yet to publicly address the video.
We've reached out to Cornell for comment -- so far, no word back.