Default Rate Statistics
Change in Definition of an Institution's "Default Rate"
The Higher Education Opportunity Act ("HEOA") of 2008 made a number of changes to federal student financial aid programs, including the timeframes for the calculation of Federal Stafford Loan Cohort Default Rates.
Under the new provisions, an institution's Cohort Default Rate (CDR) is calculated as the percentage of borrowers in the cohort who default before the end of the third fiscal year in which the borrowers entered repayment. This represents a one year extension of the current default monitoring period. Institutions with unacceptable default rates will be subject to sanctions under the new three year monitoring period starting in 2014
On September 28, 2012 , the Department of Education released official calculations of institutions' Cohort Default Rate ("CDR")for FiscaL yEAR 2009 using the new three year timeframe that will be used to calculate an institution's Cohort Default Rate.
The official 3 year National Cohort Default Rate for 2009 is 13.4%
The trial three-year CDR for FY2008 was 13.8 percent compared to a two-year rate of 6.7 percent. These rates are for informational purposes only. In 2014, institutions that have three-year rates higher than 30 percent will face possible sanctions, including loss of eligibility to participate in Title IV programs. The trial rates are broken out by sector
The Depart of Education plans to release the FY 2011 2-year draft cohort default rates on March 18, 2013 and the FY 2010 3 year draft cohort rates on March 25, 2013.
When looking at these rates:
- The trial Fiscal Year 2005 three year rate is calculated as the percentage of the institution's borrowers who entered repayment between October 1,2004 and September 30, 2005 AND who subsequently defaulted on or before September 30, 2007.
- The trial Fiscal Year 2006 three year rate is calculated as the percentage of the institution's borrowers who entered repayment between October 1,2005 and September 30, 2006 AND who subsequently defaulted on or before September 30, 2008.
- The trial Fiscal Year 2007 three year rate is calculated as the percentage of the institution's borrowers who entered repayment between October 1, 2006 and September 30, 2007 AND who subsequently defaulted on or before September 30, 2009
- The official 2008 Fiscal year default rate is a snapshot in time, representing the cohort of borrowers whose first loan repayments came due between October 1, 2007 and September 30, 2008, and who defaulted before September 30, 2009.
- The 2009 Fiscal year2 year default rate is a snapshot in time, representing the cohort of borrowers whose first loan repayments came due between October 1, 2008 and September 30, 2009, and who defaulted before September 30, 2010.
- The FY 2009 three-year rates announced on September 28, 2012 capture the cohort of borrowers whose loans entered repayment between Oct. 1, 2008, and Sept. 30, 2009, and who defaulted before Sept. 30, 2011. More than 3.6 million borrowers from over 5,900 schools entered repayment during this window of time, and approximately 489,000 of them defaulted.
- Sector differences also exist when comparing the increase in the CDR from the two-year to the three-year rates for the FY 2009 cohort, with for-profit schools displaying the biggest jump in rates from year two to year three. . The increases from the two-year to the three-year rates were:
- 7.2 percent to 11 percent for public institutions,
- 4.6 percent to 7.5 percent for private non-profit institutions, and
- 15.0 to 22.7 percent at for-profit schools.
Loyola University New Orleans
|Fiscal Year||Rate Type||Numerator||Denominator||Rate|
|2011||2 Year Official||42||1112||3.7 %|
|2010||2 Year Official||43||1107||3.8%|
|2010||3 Year Draft||66||1106||5.9%|
|2009||2 Year Official||18||950||1.8%|
|3 Year Trial||41||950||4.3%|
|2008||2 Year Official||31||923||3.3%|
|2007||2 Year Official||32||968||3.3%|
|3 Year Trial||49||967||5.1%|
|2006||2 Year Official||23||1421||1.6%|
|3 Year Trial||37||1413||2.6%|
|2005||2 Year Official||8||1411||0.5%|
|3 Year Trial||39||1409||2.7%|
For additional information on how these rates are calculated, consult the Department of Education's Cohort Default Guide Quick Reference Guide
Federal Student Aid Data Center
The Federal Student Aid Data Center is a centralized source for information relating to the federal financial assistance programs.
- Two Year Cohort Default Rate By School, State, Lender and Institution Type
- Fiscal Year 2010 2 year Default Rate (Graphs)
Updated March 25, 2013