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OFFICIAL Cohort Default Rates for Schools
Definitions




Definition of Loss Due To Three Years of 30 Percent or Greater

A school subject to loss of eligibility to participate in the Federal Family Education Loan (FFEL) Program, William D. Ford Federal Direct Loan (Direct Loan) Program, and/or Federal Pell Grant (Pell Grant) Program has FY 2014, FY 2013, and FY 2012 official cohort default rates that are 30.0% or greater. If a school fails to successfully appeal this sanction, it will lose eligibility to participate in the FFEL, Direct Loan, and/or Federal Pell Grant Program until September 30, 2019. There are several exceptions to these criteria and schools that meet exemption conditions are not subject to this sanction. For more information on the sanction or the exemptions, please refer to the Cohort Default Rate Guide.

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Definition of Loss Due to One Year of Greater than 40 Percent

A school is subject to loss of eligibility to participate in the Federal Family Education Loan (FFEL) Program and/or William D. Ford Federal Direct Loan (Direct Loan) Program if the school's FY 2014 official cohort default rate is greater than 40.0%. If a school fails to successfully appeal this sanction, it will lose eligibility to participate in the FFEL and/or Direct Loan Program until September 30, 2019. There are several exceptions to these criteria and schools that meet exemption conditions are not subject to this sanction. For more information on this sanction and the exemptions, please refer to the Cohort Default Rate Guide.

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Definition of Schools with Benefits for a CDR of 5.0% or Less

A school whose most recent official cohort default rate is less than 5.0 percent and is an eligible home institution that is originating loans to cover the cost of attendance in a study abroad program may disburse loan proceeds in a single installment to a student studying abroad regardless of the length of the student’s loan period. The school may also choose not to delay the disbursement of the first installment of loan proceeds for first-year first-time borrowers studying abroad.


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Definition of Schools with Benefits for a CDR of 15.0% or Less for 3 Years

A school with a cohort default rate of less than 15.0 percent for each of the three most recent fiscal years for which data are available, including eligible home institutions and foreign institutions, may disburse, in a single installment, loans that are made for one semester, one trimester, one quarter, or a four-month period. The school may also choose not to delay the first disbursement of a loan for 30 days for first-time, first-year undergraduate borrowers.


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Last updated September 27, 2017

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