Cohort Default Rate Challenge – Participation Rate Index Worksheet Availability

Schools that participate in the Direct Loan Program but have very few borrowers, may be able to challenge their Cohort Default Rate based on the number of students participating in the loan program at their school.

Generally, schools with 3-year CDRs of 30% or greater for three consecutive years or with CDRs greater than 40% for one year may face federal sanctions. However, schools where fewer than 21% of students borrow federal loans may be able to challenge or appeal sanctions through the PRI Challenge or Appeal (a challenge is based on a draft CDR and an appeal is based on an official CDR). This worksheet is intended to help schools understand whether their student loan volume is low enough to meet the criteria of a PRI Challenge or Appeal.