Cohort Default Rate

• Statutory Authority

  • U.S. Code, Title 20—Education Chapter 28—Higher Education Resources and Student Assistance Subchapter IV—Student Assistance Part B—Federal Family Education Loan Program §1085 Definitions for student loan insurance program: §1085 (a)(2) Ineligibility based in high default rates [HEA §435(a)(2)]
  • U.S. Code, Title 20—Education Chapter 28—Higher Education Resources and Student Assistance Subchapter IV—Student Assistance Part B—Federal Family Education Loan Program §1085 Definitions for student loan insurance program: §1085 (m) Cohort Default Rate [HEA §435(m)]

• Regulations

  • 34 CFR 668 Subpart N

• ED References

  See also Subtopics for more specific references.

  • 2019-20 FSA Handbook, Vol. 2
  • ED’s Default Management Website
  • Cohort Default Rate Guide

• NASFAA Publications and Articles

  • NASFAA AskRegs Knowledgebase

    Search or browse the Knowledgebase for answers to regulatory and compliance questions submitted by financial aid administrators.

• Subtopics

  • Calculation of CDR

    • Formula

      • 668.202(a)
      • 668.202(d)
      • 2019-20 FSA Handbook, Vol. 2, Ch. 2
      • Cohort Default Rate Guide, Ch. 2.1

    • Identifying cohort

      • General rule

        • 668.202(b)
        • 2019-20 FSA Handbook, Vol. 2, Ch. 4
        • Cohort Default Rate Guide, Ch. 2.1

      • Entering repayment, definition

        • 668.201

    • Identifying defaulted borrowers

      • General rule

        • 668.202(c)
        • Cohort Default Rate Guide, Ch. 2.1

      • Treatment of loan repayments made by school or school-affiliated entity

        • 668.202(c)(1)(iii)

    • Small number of borrowers in repayment (<30)

      • 668.202(d)(2)

    • Treatment of converted TEACH Grant

      • 668.202(b)(3)

  • Default prevention plans

    • 668.217
    • Part 668, Subpart N, Appendix A
    • GEN-05-14
    • FSA’s Default Prevention Resource Information Page
    • 2019-20 FSA Handbook, Vol. 2, Ch. 4
    • 2019-20 FSA Handbook, Vol. 2, Ch. 6

  • Draft CDR

    • Incorrect data challenge

      • 668.204(b)
      • Cohort Default Rate Guide, Ch. 4.1

    • Notification to school

      • 668.204(a)
      • Electronic Announcement, 2/25/19

    • Participation rate index challenge

      • 668.204(c)
      • Cohort Default Rate Guide, Ch. 4.2

  • Institution changes status

    • General rule

      • 668.203

    • Acquisition of branch or location

      • 668.203(c)

    • Acquisition or merger of institutions

      • 668.203(b)

    • Branch or location becomes an institution

      • 668.203(d)

  • Locations of institution

    • 668.202(a)(4)

  • Loss of eligibility to participate

    • 668.16(m)
    • 668.206
    • 668.208
    • 2019-20 FSA Handbook, Vol. 2, Ch. 4

  • Official CDR

    • Appeals, challenges, adjustments

      • General rule

        • 668.208

      • Average rate appeals

        • 668.215
        • Cohort Default Rate Guide, Ch. 4.9

      • Content and format

        • 668.208(c)

      • Economically disadvantaged appeals

        • 668.213
        • Cohort Default Rate Guide, Ch. 4.7

      • Erroneous data appeals

        • 668.211
        • Cohort Default Rate Guide, Ch. 4.5

      • Improper loan servicing

        • 668.212
        • Cohort Default Rate Guide, Ch. 4.6

      • Limitations on ability to dispute

        • 668.208(b)

      • New data adjustments

        • 668.210
        • Cohort Default Rate Guide, Ch. 4.4

      • Participation rate index appeals

        • 668.214
        • Cohort Default Rate Guide, Ch. 4.8

      • Thirty-or-fewer borrowers appeals

        • 668.216
        • Cohort Default Rate Guide, Ch. 4.10

      • Timeline and deadlines

        • 668.205(d)
        • 668.209(b)
        • 668.210(b)
        • 668.211(b)
        • 668.212(c)
        • 668.213(g)
        • 668.214(c)
        • 668.215(b)
        • 668.216(b)
        • Cohort Default Rate Guide, Appendix A

      • Uncorrected data adjustments

        • 668.209
        • Cohort Default Rate Guide, Ch. 4.3

    • Notification to school and general rules

      • 668.205
      • Electronic Announcement, 9/23/19

  • Perkins Loan CDR

    See top list entry for Perkins Loan Program

  • Regaining institutional eligibility

    • 668.206(g)

  • Uses of CDR by ED

    • 668.200(a)