Student Loan Default Rates

Cohort Default Rates

Definition:

As defined with 34 CFR 668.181-668.198, a Cohort Default Rate (CDR) is the percentage of Stafford Loan borrowers who default before the end of the fiscal year following the fiscal year in which they entered repayment on their loans. The U.S. Department of Education calculates CDRs annually for each participant in the federal student loan programs. The most recent year for which final CDRs have been published is 2004.

There are benefits to monitoring your institution's CDR. For example, low CDRs may qualify an institution for flexible disbursement requirements. Whether your institution has a high or low rate, you have an accountability to address the reasons why loan defaults occur within the borrower population at your institution.

For free, customized training regarding calculating, monitoring, and managing your school's default rates, request training from the MDHE's default prevention staff.