Three-year Cohort Rate Preview
In the Oct. 28, 2009 Federal Register, the Department of Education (ED) published regulations that will affect the calculation of default rates beginning with the FY 2009 cohort. The new provisions provide a one-year extension of the current default monitoring period.
To help institutions understand the impact of the new three-year cohort default rate (CDR) calculation, ED provided schools with their unofficial trial CDRs for the last three cohorts (FY 2005-2007). These rates are provided for informational purposes only and no benefits or sanctions apply. The information released on Dec. 7 is intended to help schools prepare for inquiries when ED makes the information public on Dec. 14.
OGSLP believes this useful cohort data can help your default prevention efforts in a number of ways. That’s why in February 2009, we:
- Provided schools with a comparison chart that applies the three-year methodology to their 2006 cohort rate along with an estimated three-year cohort rate with corresponding sector rates for comparison purposes.
- Offered our cohort analysis service as part of our ongoing default prevention efforts.
Using OGSLP’s cohort analysis service in conjunction with this new trial cohort data, your school can identify the characteristics and trends of “default rate borrowers.” Identification of at-risk borrowers allows you to build successful default prevention programs that help your students avoid default and stay on the right track.
Let OGSLP's Default Prevention team help you reach your default prevention goals. To request a cohort analysis or Default Prevention School Tool demonstration, contact Wayne Sparks, OGSLP's Default Prevention Manager, at 405.234.4358, 800.247.0420 (toll-free) or firstname.lastname@example.org.