Posted Date: August 3, 2016
|Author:||Katrina Turner, Service Director, Operations Performance Management Services, Federal Student Aid|
Subject: Participation Rate Index Worksheet Availability
We are pleased to announce the availability of the Default Prevention Participation Rate Index (PRI) Worksheet. The PRI is a mitigating circumstance when a school can challenge its draft Cohort Default Rate (CDR) or appeal its official CDR if the school is facing a sanction for a high CDR. The PRI Worksheet can be used to easily determine if a school should challenge or appeal its CDR based on low participation in the Federal Family Education Loan (FFEL) Program and William D. Ford Federal Direct Loan (Direct Loan) Program.
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.
To download the PRI Worksheet, go to the Default Management Web site and choose “CDR Guide” from the left-hand navigation bar. The PRI Worksheet can be found in the “Templates/Spreadsheets” section. Instructions for using this tool are included within the worksheet.
If you have questions about using the PRI Worksheet, contact the Operations Performance Division at 202/377-4259. You may also e-mail at email@example.com.
Publication Date: 8/3/2016