On Tuesday, February 18, 2014, USDE distributed the FY 2011 Draft Cohort Default Rate notification packages to all eligible domestic and foreign schools, guaranty agencies, and lenders.


Keep in mind that this year only 3-year rates will be published and schools will be subject to loss of eligibility since three 3-year rates have been calculated (FY 2009 published in 2012, FY 2010 published in 2013, and FY 2011 published in 2014). School are subject to loss of eligibility if they have a CDR greater than 30% for 3 years or if they have a 2011 3-Year CDR greater than 40% for one year.


As noted in the cohort default rate regulations at 34 CFR 668.217, if a school’s FY 2011 official 3-year CDR is equal to or greater than 30 percent when the official CDR is published in September 2014, the school will be required to establish a Default Prevention Task Force and develop a default prevention plan. The plan must be submitted to the Department. In developing the plan, a school will be required to:


1. Identify the factors causing the default rate to exceed the threshold;

2. Establish measureable objectives and the steps the school will take to improve its cohort default rate; and

3. Specify the actions the school will take to improve student loan repayment, including counseling students on repayment options.


Questions regarding developing and submitting the default prevention plan should be sent to defaultpreventionassistance@ed.gov.

Begin Dates for Challenging FY 2011 3-Year Draft Cohort Default Rates

The time period for challenging your FY 2011 3-Year Draft Cohort Default Rate began on Wednesday, February 26, 2014 for all schools.


All Incorrect Data Challenges (IDC) must be made through the eCDR Appeals application. Participation Rate Index Challenges (PRI) will continue to be submitted via hard copy. As a reminder, eCDR Appeals is a web-based application that allows schools to electronically submit certain challenge and adjustment requests during the specified timeframes. The application also allows data managers (guaranty agency or Federal Loan Servicer) and Federal Student Aid personnel to electronically view and respond to these challenge/adjustment requests. The application tracks the entire life cycle of each request from the time the case is submitted until the time a decision is made and the case is closed.


Note: The FY 2011 2-year cohort default rate published in September 2013 was the last 2-year rate to be calculated and can no longer be challenged. Schools can only submit CDR challenge and adjustment requests 3-year cohort default rates during the specified timeframes.


Contact Information

For additional information regarding the school cohort default rate calculation or the challenge processes, please refer to the Cohort Default Rate Guide at http://ifap.ed.gov/DefaultManagement/CDRGuideMaster.html.


For specific information regarding eCDR Appeals, please visit the eCDR Appeals Web site, where you will also find the User Guides for each of the challenge and adjustment processes, as well as a User Guide for the registration process. Additionally, you will find links to recordings of eCDR Appeals demonstration sessions to assist first-time users.


You may also contact Operations Performance Division by calling the Hotline at 202/377-4259 or by e-mailing fsa.schools.default.management@ed.gov or.


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