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(Loans) Subject: Availability of Electronic Cohort Default Rate Appeals Process (eCDR Appeals) Release 2.1

Posted Date: February 09, 2009

Author: Sybil Phillips, Service Director, Portfolio Performance Management, Federal Student Aid

Subject: Availability of Electronic Cohort Default Rate Appeals Process (eCDR Appeals) Release 2.1

We are pleased to announce the availability of Release 2.1 of the Electronic Cohort Default Rate Appeals process (eCDR Appeals) for the FY 2007 draft season. As the community is aware, in February 2008 we provided schools with the opportunity to submit and process cohort default rate challenges during the FY 2006 draft season via eCDR Appeals, a Web-based application. With Release 2.1, schools will again be able to submit their Incorrect Data Challenges (IDC) electronically. In addition, we have enhanced eCDR Appeals to improve performance and usability.

The eCDR Appeals application facilitates the exchange of information between parties for three of the challenge/adjustment processes. These processes are the IDC during the draft cycle, and the Uncorrected Data Adjustment (UDA) and New Data Adjustment (NDA) during the official cycle. The application allows schools to electronically submit these challenges and adjustment requests during a cohort default rate cycle and guaranty agency, Direct Loan Servicing Center, and Federal Student Aid personnel to electronically view and respond to these challenges and adjustment requests. The application tracks the entire life cycle of each challenge/adjustment request from the time the case is submitted until the time a decision is made and the case is closed.

In an attachment to this announcement, we provide a summary of important features the eCDR Appeals application offers. This information will assist a school in determining whether it will choose to use eCDR Appeals to challenge its FY 2007 Draft Cohort Default Rate. As explained in a February 9, 2009 Electronic Announcement on the Information for Financial Aid Professionals (IFAP) Web site, we distributed the FY 2007 Draft Cohort Default Rates to all eligible domestic and foreign schools on February 9, 2009.

While use of eCDR Appeals remains optional for schools at this time, we strongly encourage every school to participate in the electronic process. If a school submits its FY 2007 IDC electronically via eCDR Appeals, the school will be able to submit its UDA and/or NDA electronically during the FY 2007 official cycle. This offers important advantages as explained in question/answer #2 in the attachment.

Note: If a school submits its FY 2007 IDC via paper, it will not be able to submit an electronic UDA or NDA. The school will need to submit via the paper process for the entire FY 2007 cycle.

Contact Information

If your school has questions about the eCDR Appeals application, contact us by e-mailing or by calling the Portfolio Performance Division (formerly Default Prevention and Management) Hotline at 202/377-4259.

Last Modified: 02/08/2009