Your Cohort Default Rate: What Does It Mean?

[Pages:6]Your Cohort Default Rate: What Does It Mean?

2017 SASFAA Annual Conference Biloxi, MS

February 12?15, 2017

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February 2017

2017 SASFAA Annual Conference

Your Cohort Default Rate: What Does It Mean?

Table of Contents

Slides ....................................................................................................................................................................1 Overview of Cohort Default Rate ........................................................................................................................23 Cohort Default Rate Timeline: Challenges, Adjustments, and Appeals..............................................................27 Cohort Default Rate: Challenges, Adjustments, and Appeals ............................................................................31 References for Cohort Default Rate Issues ........................................................................................................33

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Your Cohort Default Rate: What Does It Mean?

Slide 1 ? 2017 NASFAA

Your Cohort Default Rate: What Does It Mean?

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Amanda Sharp Online Instruction Manager

NASFAA

SASFAA Annual Conference February 2017

Biloxi, Mississippi

Overview of Cohort Default Rates

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Slide 3 ? 2017 NASFAA

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Your Cohort Default Rate: What Does It Mean?

Your Cohort Default Rate: What Does It Mean?

Goals

? Overview of cohort default rates ? Impact on institutions ? What do do next

Slide 4 ? 2017 NASFAA

What is a Cohort Default Rate (CDR)? ? The CDR is a percentage that represents:

? Cohort of borrowers who enter repayment ? Members of that cohort who defaulted

Slide 5 ? 2017 NASFAA

What is a Cohort Default Rate (CDR)?

? The CDR is a percentage that represents:

? Cohort of borrowers who enter repayment ? Members of that cohort who defaulted

? Calculation performed each federal fiscal year

October 1

September 30

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Your Cohort Default Rate: What Does It Mean?

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Your Cohort Default Rate: What Does It Mean?

Cohort Default Rate Calculations Non-Average Rate

Numerator

Borrowers included in the denominator who have defaulted during cohort period

Denominator

Borrowers who entered repayment in cohort fiscal year

Cohort Default Rate

%

Slide 7 ? 2017 NASFAA

Borrowers in the cohort Borrowwheorsdewfhaouldteedfaiunlted

inFFYY1143,,FFYY1154,,oorrFFYY1165 10/1/2012?9/30/2015 10/1/2013?9/30/2016

Borrowers who entered repayment FY14

10/1/2013?9/30/2014

Slide 8 ? 2017 NASFAA

8 90

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Borrowers in the cohort Borrowwheorsdewfhaouldteedfaiunlted

inFFYY1143,,FFYY1154,,oorrFFYY1165 1100//11//22001123??99//3300//22001156

Borrowers who entered repayment FY14

10/1/2013?9/30/2014

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Your Cohort Default Rate: What Does It Mean?

Your Cohort Default Rate: What Does It Mean?

Borrowers in the cohort who defaulted in

FY14, FY15, or FY16

8

10/1/2013?9/30/2016

8.8%

90

Borrowers who entered repayment FY14

10/1/2013?9/30/2014

Slide 10 ? 2017 NASFAA

Cohort Default Rate Calculations Average Rate

Numerator

Borrowers included in the denominator who have defaulted during cohort period

Denominator

Borrowers who entered repayment in cohort fiscal year and the two preceding fiscal years

Cohort Default Rate

%

Slide 11 ? 2017 NASFAA

Cohort Default Rates

FEBRUARY

Draft Rates Issued

Each Fiscal Year

Slide 12 ? 2017 NASFAA

Your Cohort Default Rate: What Does It Mean?

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