Official 3-Year Cohort Default Rates for Guaranty Agencies and Lenders
On October 28, 2009, the Department published in the Federal Register the regulations that will govern the calculation of default rates beginning with the three-year FY 2009 cohort year. Under the new provisions, a guaranty agency's Cohort Default Rate is calculated as the percentage of borrowers in the cohort who default before the end of the second fiscal year following the fiscal year in which the borrowers entered repayment. This extends the length of time in which a student can default from two to three years.
Each year the Department publishes cohort default rates based on the percentage of a lender's or guarantor's student borrowers who enter repayment on FFEL program loans during a federal fiscal year (October 1–September 30) and default before the end of the next fiscal year.
The Department of Education releases official cohort default rates once per year. The FY 2011 3-Year official cohort default rates were mailed to lenders and guarantors on September 22, 2014. The FY 2011 3-Year national cohort default rate average is 13.7 percent.
Also available are lists of the TOP 100 lenders who currently hold FFELP loans that entered repayment in 2011 and those who originated loans that entered repayment in 2011. (These files are in Adobe's Portable Document Format or PDF. To read them you need the Adobe Acrobat Reader; if you don't have that on your computer, you can download a free copy.)
During the official cohort default rate process, guaranty agencies and lenders are given the opportunity to correct their cohort default rate(s) with the Department. The correction process along with other important cohort default rate information can be found in the Cohort Default Rate Guide for Guaranty Agencies and Lenders.