Cohort Default Rate Policy
What is Cohort Default Rate (CDR): A cohort default rate is the percentage of a school's borrowers who enter repayment on certain Federal Family Education Loan (FFEL) Program or William D. Ford Federal Direct Loan (Direct Loan) Program loans during a particular federal fiscal year (FY), October 1 to September 30, and default or meet other specified conditions prior to the end of the second following fiscal year.
The U.S. Department of Education releases official cohort default rates once per year in September via the eCDR process.
If an institutions cohort default rate is equal to or greater than 30 percent they must establish a default prevention task for that prepares a plan to:
- Identify the factors causing your cohort default rate to exceed the threshold
- Establish measurable objectives and the steps you will take to improve your cohort default rate
- Specify the actions you will take to improve student loan repayment, including counseling students on repayment options
Monitoring:
The Director of the Office of Financial Aid & Scholarships monitors the CDR on an annual basis. Information on the school’s current CDR.
If the institutions CDR gets to 28%:
- Students will be notified on our website
- Administration and the VA certifying official will be notified and will then share it with their chain of command
- Default prevention plan will be created and enacted