Bulletin ID
DLB - 99 - 44
| PublicationDate: 7/1/99 BulletinID: DLB - 99 - 44 July 1999 DLB-99-44 Subject: Cohort Default Rate Loan Record Detail Reports Dear Partner: The Department provided schools with draft FY 1997 cohort default rate data in late March/early April 1999. Many schools may have noticed that some defaulted Direct Loan Program loans were listed in the cohort default rate loan record detail reports with what appeared to be conflicting information. Some Direct Loan Program loans were listed on the report with a loan status code of RP, which indicates that a loan is in repayment, and a claim reason code of IX, which indicates that the loan has defaulted. The Department received numerous inquiries regarding how a loan could be in repayment and in default at the same time. The Department has researched this issue and has determined that a lag time in submitting updated information to the National Student Loan Data System (NSLDS) caused the apparent inconsistency. The Departments research has indicated that the loans that appeared with a loan status code of RP and a claim reason code of IX were correctly reported to NSLDS as defaulted loans. Unfortunately, the loan status code was not updated to reflect the recent default, as identified by the claim reason code, prior to the calculation of the draft FY 1997 cohort default rates. The Department has identified a process that will work to ensure that the loan status code is updated with the most recent information prior to the calculation of the official FY 1997 cohort default rates. If you have any questions about your schools cohort default rate data or the cohort default rate loan record detail report, please contact the Default Management Division at (202)708-9396 or via email at OSFA_IPOS_Default_Management_Division@ed.gov. Thank you for your continued partnership in the Direct Loan Program. Sincerely, Margaret E. White Chair Direct Loan Task Force |