[Defaultprevention] Coming Soon: Draft Cohort Default Rates

[Heid, Mary]

Coming Soon: Draft Cohort Default Rates
The Department of Education (ED) is scheduled to release draft FY 2011 three-year cohort default rates February 18, 2014. Borrowers that makeup the 2011 3-Year Draft Cohort Default Rates include those who entered repayment in 2011 (Oct. 1, 2010 to Sept. 30, 2011) and defaulted in 2011, 2012 or 2013 (Oct. 1, 2010 to Sept. 30, 2013).

ED will electronically transmit each school's cohort default rate notification package using the school's Student Aid Internet Gateway destination point. Any problems with the transmission must be reported to ED within five business days.

You may challenge the draft cohort default rate by submitting an Incorrect Data Challenge online through the electronic Cohort Default Rate Appeals (eCDRA) application, or by sending a Participation Rate Index Challenge to ED. The 45-day timeframe for submitting a challenge begins on the sixth business day following the announced transmission date, as posted on IFAP.

Here are a few steps you can take to prepare for receiving your draft cohort default rate:

  *   Review the Cohort Default Rate Guide. This guide<http://ifap.ed.gov/DefaultManagement/finalcdrg.html> will let you know what to expect, and what options are available in response to your cohort default rate.
  *   Register for an eCDRA account (if you have not already done so). All Incorrect Data Challenges (as well as appeals after publication of the final rates) must be filed through eCDRA. The eCDRA Registration and User Account Guide<https://ecdrappeals.ed.gov/ecdra/docs/SA_User_Guide.pdf> can help you get started.
  *   Learn how to prepare and submit an Incorrect Data Challenge. The period following the release of the draft rates is a school's opportunity to correct data, and to preserve the right to file later appeals. Learn more from the eCDRA IDC User Guide<https://ecdrappeals.ed.gov/ecdra/docs/eCDR_Appeals_IDC_User_Guide.pdf>.

If you have questions or need more information, contact ED's Operation Performance Division's Default Prevention and Management Hotline at 202-377-4259 or fsa.schools.default.management at ed.gov<mailto:%20fsa.schools.default.management at ed.gov>.

Cohort Analysis Service

OCAP offers a cohort analysis service, utilizing cohort rate data supplied by the Department of Education via the Student Aid Internet Gateway (SAIG). OCAP is able to identify the characteristics and trends for the groups of borrowers who are more likely to default. Identification of higher risk borrower groups helps schools prioritize activities and assign resources as they build successful default prevention plans.

Default Prevention Plans

A Default Prevention Plan (DPP) is an important tool for institutions working to lower their Cohort Default Rate (CDR). While many institutions would benefit from having a written plan, institutions with a CDR above 30 percent are required to develop and follow a DPP. These schools must also submit a copy of their plan to the Department of Education and review their plan at least once per year.

OCAP offers free on-site consulting services to Oklahoma schools that are interested in developing a comprehensive DPP. Additionally, we have printed and electronic resources available to assist you in providing your students with accurate information to help them make smart borrowing decisions to fund their education.

OCAP's Default Prevention team is ready and able to help schools reach their default prevention goals. For more information or to request a cohort analysis or help with your Default Management Plan, contact Wayne Sparks, OCAP's Default Prevention Manager, at 405.234.4358, 800.247.0420 (toll-free) or wsparks at ocap.org<mailto:wsparks at ocap.org>.


Mary Heid
Director for Default Prevention, Compliance, and Training Services
Oklahoma College Assistance Program (OCAP)
a division of the Oklahoma State Regents for Higher Education
405.234.4489 (office direct)
405.234.4582 (fax)
www.ReadySetRepay.org<http://www.ReadySetRepay.org>
http://www.facebook.com/RepaymentScoop [cid:0F60BDCA488F7D44BB737951184A4E23 at osrhe.edu]

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