Stafford loan borrowers who enter repayment within a given federal fiscal 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.
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)
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
2018
10/1/2017 9/30/2018 10/1/2017 9/30/2020 12/4/2019
1/1/2020
Feb 2021
Sep 2021
2019
10/1/2018 9/30/2019 10/1/2018 9/30/2021
12/4/2020
1/1/2021
Feb 2022 Sep 2022
2020
10/1/2019 9/30/2020 10/1/2019 9/30/2022
12/4/2021
1/1/2022
Feb 2023 Sep 2023
2021
10/1/2020 9/30/2021
10/1/2020 9/30/2023
12/4/2022
1/1/2023
Feb 2024 Sep 2024
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 12/5/2025
1/1/2026
Feb 2027 Sep 2027
*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.
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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