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DEMOGRAPHIC REALITIES:
How to Review Your CDR to Determine At-Risk Students and Focus Efforts for Success
DEMOGRAPHIC REALITIES:
How to Review Your CDR to Determine At-Risk Students and Focus Efforts for Success
Presented by: Lorri Connor, Campus Engagement and Education ConsultantDate: 05/19/14
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• CDR Overview• Ramifications and Reports• Institutional Application
Session Highlights
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Important Take-Aways
• Timing is everything
• Consolidation versus Rehabilitation
• Understanding your Reports
• Reporting Review
• Know who is in your cohort
CDR Overview
What Is A CDR?
• The percentage of the school’s borrowers who enter repayment on a loan during the fiscal year and default within the cohort default period.*
− Measures the percentage of borrowers defaulting during a specific time period.
− Calculated based on borrowers entering repayment, not types of loans.
*Applies to schools who have 30 or more current or former students entering repayment during the fiscal year. For schools with 29 or fewer borrowers entering repayment during a fiscal year, the CDR is an “average rate” based on borrowers
entering repayment over a three year period.
Fiscal Year And CDR
• CDR is based on the federal fiscal year (FFY).− The FFY begins October 1 and ends on September 30 of the
following calendar year.
• “Cohort fiscal year” refers to the fiscal year for which the CDR is calculated—not the year the rate is available or published.− For example: When calculating the 2010 CDR, the cohort fiscal
year was FFY2010 (October 1, 2009, to September 30, 2010).
How CDR Is Calculated
Numerator:
Number of student loan borrowers who entered repayment during a specific FFY and defaulted within the cohort default period
÷
Denominator:
Total number of student borrowers who
entered repayment during the specified FFY
×100
Note: This formula is for schools with 30 or more student borrowers who entered repayment
Borrowers In The Denominator
• Borrowers are included in the denominator based on their repayment start date.– Repayment begins 6 months after the borrower separates from the
institution, or drops below half-time.– The official repayment start date is the first day after the end of the
grace period.
• Borrowers who use deferment or forbearance are still included in the denominator.
Borrowers In The Numerator
• Defaulted borrowers who are included in the denominator comprise the numerator.
• Direct Loan program (DL) loans enter default after 360 days of delinquency.
• Federal Family Education Loan Program (FFELP) loans enter default if the guarantor has paid a default claim to the lender holding the loan.− The date the guarantor pays the lender (the claim date)
determines what year the loan defaults.
Loans Used In Calculation
Consolidation/Rehabilitation
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2 vs. 3-Year CDR Monitoring
2-Year
3-Year
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3-Year CDR Timeline
Period during which borrowers default
Oct. 1 2009 Sept. 30 2010 Sept. 30 2011 Sept. 30 2012
Feb. 2013 – Draft 2010
CDR
Sept. 2013 – Final 2010
CDR
Period during which borrowers enter repayment
(FY2010)
Ramifications and Reports
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CDR Benefits And Sanctions*
* Benefits and sanctions for 3-year CDR calculation
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The Timeline
Cohort Default Rate Guidehttp://www.ifap.ed.gov/DefaultManagement/CDRGuideMaster.html
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NSLDS Reports
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NSLDS Reports
Reports for Data Accuracy– Date Entered Repayment Report– School Repayment Info Loan Detail – School Cohort Default Rate History – Enrollment Reporting Summary
Reports for Default Prevention – School Loan Portfolio Report – Date Entered Repayment Report– Borrower Default Summary – Exit Counseling Report– Delinquent Borrower Report
Institutional Application
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Keep Focused
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Example
Target CDR: 4%
Number of borrowers who entered repayment between October 1, 2009, and September 30, 2010:
5,000
Maximum number of defaults allowed: 200
Increase in 2010 CDR for every borrower who defaults during the cohort period:
0.02%
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Delinquent Borrower Report
- Borrower information- Name- SSN- Date of Birth
- Loan information- Original loan amount, type, date disbursed/guaranteed- Outstanding principle balance (interest & fee balance)- Scheduled monthly payment amount- Days delinquent and delinquent date- {Date of default (and date of default for CDR)}
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Beyond NSLDS
• Once you have identified your delinquent and/or defaulted borrowers, what can you find out about them?
• Attaching institutional data can help you see trends.• Specific major(s), academic performance, withdraw vs.
completion, online students, loan debt, etc.
• What institutional processes can you set up or change to help address these areas?
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Tips For Reports
• Run reports: set regular monthly dates and work the reports• Identify current cohort borrowers• Identify current cohort delinquent borrowers• Identify critical delinquency borrowers
• Any borrower that becomes delinquent before the last 360 days of the cohort year
• Focus efforts on these critical borrowers• Counsel about different repayment options• Help borrower go through loan rehabilitation process
Questions?
ContactName: Lorri Connor
Title: Campus Engagement and Education Consultant
Phone: 617.521.6220
Email: [email protected]