Default Prevention & Management

SUBJECT: Default Prevention & Management

Through a series of activities, statements, questions and links to additional resources, this assessment is designed to assist your school in managing your cohort default rate and to help prevent your students from defaulting on federal student loans.

If you identify areas requiring a corrective action, we recommend that you complete an Action Plan.

Activity Bar:

Default Prevention & Management Activity 1: Early/Late Stage Delinquency

Default Prevention & Management Activity 2: Default Management Plan

Default Prevention & Management Activity 3: Defaulted Borrower Profile Templates

Additional Links:

Cohort Default Rate Guide;

Online Training Webinar, Default Aversion and Management – DCL ANN-14-02 and DCL ANN-14-23;

DCL GEN-15-06 - Loan Counseling Requirements and Flexibilities;

School Portfolio Report Import Tool;

Financial Literacy Guidance;

Financial Capability of Postsecondary Students Report

For reference, the table below lists the regulatory areas related to Default Management. The left column shows the title of the regulatory section and summarizes the main content of some of the sections. The middle column includes a link to each regulatory section in the Electronic Code of Federal Regulations and any related guidance posted in the Knowledge Center. Where applicable, the associated assessment activity is listed in the third column.

Default Management Regulations

Section Title	Links	Assessment Activity
Definitions 34 CFR 668.182	34 CFR 668.182
Calculating Cohort Default Rates 34 CFR 668.202: CDR Calculation Average Rate Formula CDR Challenges, Adjustments and Appeals (3 year Cohort Default Rates) 34 CFR 668.201; 34 CFR 668.202; 34 CFR 668.203; 34 CFR 668.204; 34 CFR 668.205; 34 CFR 668.206; 34 CFR 668.207; 34 CFR 668.208; 34 CFR 668.209; 34 CFR 668.210; 34 CFR 668.211; 34 CFR 668.212; 34 CFR 668.213; 34 CFR 668.214; 34 CFR 668.215; 34 CFR 668.216	34 CFR 668.202 34 CFR 668.201 34 CFR 668.203 34 CFR 668.204 34 CFR 668.205 34 CFR 668.206 34 CFR 668.207 34 CFR 668.208 34 CFR 668.209 34 CFR 668.210 34 CFR 668.211 34 CFR 668.212 34 CFR 668.213 34 CFR 668.214 34 CFR 668.215 34 CFR 668.216
Determining cohort default rates for institutions that have undergone a change in status 34 CFR 668.203	34 CFR 668.203
Sanctions or Benefits Associated with Official Appeals	Cohort Default Rate Guide, Chapter 2.4 Cohort Default Rate Guide, Chapter 4.1
Managing Cohort Default Rate Data	Cohort Default Rate Guide Cohort Default Rate and Repayment FAQs Definition of Default for Student Eligibility and CDRs
Default Prevention (Federal Requirements) 34 CFR 668.14(b)(15); 34 CFR 685.304; 34 CFR 685.309 Default Prevention Plans 34 CFR 668.217 and Appendix A of Subpart N to 34 CFR 668;	34 CFR 668.14 34 CFR 685.304 34 CFR 685.309 34 CFR 668.217 Appendix A of Subpart N to 34 CFR 668 See also: Default Prevention Resource Information	Default Prevention & Management Activity 1: Early/Late Stage Delinquency Default Prevention & Management Activity 2: Default Management Plan Default Prevention & Management Activity 3: Defaulted Borrower Profile Templates