ED will release Fiscal Year (FY) 2015 Official Cohort Default Rates (CDR) to all eligible institutions in September. Schools will receive their CDR electronically via their SAIG mailbox, sometime on or after September 25. The Cohort Rates are an important metric used to determine school or program quality.
This year’s Cohort includes three years; FY 2015, 2014 and 2013.
Schools with low cohort default rates can receive their funds more timely than schools with rates above certain thresholds. Schools with a 3-year cohort default rate less than 15% enjoy the benefit of the ability to deliver disbursements to first-year, first-time undergraduate borrowers without delay. Schools with rates greater than 15% must delay the delivery of loans for 30 days.
Schools with 3-year CDRs of 30% or greater for three consecutive years, or with CDRs greater than 40% for just one year may face federal sanctions including loss of Direct Loan or Pell Grant Program eligibility. Institutions may challenge, appeal, or have their rate adjusted in certain circumstances.
Be on the lookout for more information such as an Electronic Announcement announcing the official release dates of the 2015 CDR package from FSA’s Operations Performance Division in the forthcoming days. In the meantime, check out the Default Management Web site which contains resources for Financial Aid Professionals, Data Managers and Students.