Posted Date:September 12, 2012
|Author:||Katrina Turner, Director, Operations Performance Division, Federal Student Aid|
Subject: FY 2010 2-Year and FY 2009 3-Year Official Cohort Default Rates Release Scheduled for September 17 and 24, 2012
This month, we plan to release Cohort Default Rates to all eligible schools, guaranty agencies, and lenders. This year, we plan to release a 2-year and a 3-year cohort default rates as follows:
- On September 17, 2012 we plan to release the FY 2010 2-Year Cohort Default Rates to schools, guaranty agencies, and lenders only.
- On September 24, 2012 we plan to release the FY 2009 3-Year Cohort Default Rates to schools, guaranty agencies, and lenders only.
Please note: After the release of the 2009 3-Year rates on September 24, the Department of Education (the Department) will publicly post both the 2010 2-Year and the 2009 3-Year Cohort Default Rates to the Default Management Web site and the FSA Data Center. In addition, we will post an Electronic Announcement about the rates on the Information for Financial Aid Professionals (IFAP) Web site.
All schools, both domestic and foreign, enrolled in the Electronic Cohort Default Rate (eCDR) Process will receive their FY 2010 2-Year and FY 2009 3-Year Cohort Default Rates and accompanying documentation via their Student Aid Internet Gateway (SAIG) mailbox. Any school not enrolled in the eCDR process will need to download its cohort default rate and accompanying documentation from the National Student Loan Data System (NSLDS) via the NSLDS Professional Access Web site. The official cohort default rate is found on the last page of the Loan Record Detail Report (LRDR). We encourage any school not already signed up for the eCDR process to do so by completing the enrollment form on the SAIG Enrollment Web site.
Guaranty agency FY 2010 2-Year and FY 2009 3-Year Cohort Default Rates will be provided via e-mail and lender rates will be provided via postal service. Both guaranty agency and lender rates may also be obtained through the NSLDS.
There will be no sanctions associated with 3-Year cohort default rates until three years of 3-Year cohort default rates have been collected. This means that the first year that a school will be subject to loss of eligibility is fiscal year 2011 which will be released in 2014.
However, if a school's FY 2009 3-Year cohort default rate is equal to or greater than 30 percent the school must establish a default prevention task force that prepares a plan to identify the factors causing its cohort default rate to exceed 30 percent and submit to the Department for review.
Additionally, due to enhancements being made to allow schools to submit a 2-year and 3-year uncorrected data adjustment and/or new data adjustment, the eCDR Appeals system will not be available to schools until Monday, September 24, 2012. This will not affect a school’s appeal timeframe, as the appeal timeframe begins on the sixth business day after the release of the rates. Thus, for the FY 2010 2-year cohort default rates, the timeframe begin date is Tuesday, September 25. For the FY 2009 3-year cohort default rates, the timeframe begin date is Tuesday, October 2.
Any school that did not have a borrower in repayment, during the current cohort default rate period will not receive an Official Cohort Default Rate notification package. These schools are considered to have no cohort default rate data and no default rate.
- Some schools have a small number of borrowers entering repayment. At other schools, only a small portion of the student body takes out student loans. In such cases, the cohort default rate should be interpreted with caution.
Contact InformationIf you have questions about the FY 2010 2-Year and FY 2009 3-Year Cohort Default Rates, contact us by e-mailing firstname.lastname@example.org or by calling the Operations Performance Division Hotline at 202/377-4259.