Inceptia_ManagingYourCDR.pdf

PLUS Loans, Federal Insured Student Loans (FISLs), and Federal Perkins Loans.

Borrowers in the cohort who default within cohort default three-year period (Numerator) Cohort of federal student loan borrowers who enter repayment during cohort fiscal year (Denominator) See Cohort Year Impact Understanding how to impact your school’s cohort default rate is crucial, as it directly depends on the time left in each cohort year to address delinquent accounts. Use this tool to see the time that has expired versus remaining within each cohort year.

The CDR is the percentage of borrowers in an institution’s cohort who default within the next three years after entering repayment. The denominator is built from those students who enter repayment between October 1 and September 30 but then can default for up to three years after the year the cohort began. Benefits of a Low CDR Aside from being able to offer Federal financial aid, schools with lower default rates are awarded extra benefits. Beginning with loans made on or after October 1, 2011, if a school’s official CDR is less than 15% for either the two-year or three-year CDR calculations, for the three most consecutive years, the school may deliver loan funds in a single installment if the loan is made for a single term in a standard term-based program. The same applies to nonstandard, term-based programs when the term is no longer than four months. Additionally, the school is not required to delay delivery of Stafford loan funds to first-year students who are first-time borrowers if the school’s three most consecutive official CDRs are less than 15%.

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Three-Year Cohort Default Rate Schedule

Repayment

Default

Cohort Rate Release

Default Prevention Deadline*

Cohort Year

Rehabilitation Deadline**

Start Date

End Date

Start Date

End Date

Draft Rate

Final Rate

2022

10/1/2021

9/30/2022 10/1/2021 9/30/2024 12/4/2023

1/1/2024

Feb 2025 Sep 2025

2023

10/1/2022 9/30/2023 10/1/2022 9/30/2025

12/4/2024

1/1/2025

Feb 2026 Sep 2026

2024

10/1/2023 9/30/2024 10/1/2023 9/30/2026 12/4/2025

1/1/2026

Feb 2027 Sep 2027

2025

10/1/2024 9/30/2025 10/1/2024 9/30/2027

12/4/2026

1/1/2027

Feb 2028 Sep 2028

2026

10/1/2025 9/30/2026 10/1/2025 9/30/2028 12/5/2027

1/1/2028

Feb 2029 Sep 2029

*Latest an account can become 60 days delinquent and still default by the end of the cohort year. **Latest date in which a repayment plan can be started and the loan be rehabilitated before the end of the cohort year and be removed from the cohort default rate. This assumes nine payments will be made with no gaps.

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