Take Our CDRs Quiz, Check Out Important Reminder

Submitted by Dave Bowman, Regional Director
Great Lakes Educational Loan Services, Inc.

Reviewing your draft Cohort Default Rates can test your brain power—and figuring out whether a student belongs in a particular cohort year might be harder than you think. How well do you know the factors that determine cohort year? Take our three-question quiz to find out.

Quiz: Can You Place These Students in the Correct CDR Calculation?

1.       Emma, History Degree

• Emma graduated and received her degree in history from your school in December 2012. She defaulted on her loan in June 2015. According to the National Student Loan Data System (NSLDS), she transferred to another school to begin graduate school. Should Emma’s loan be included in your fiscal year (FY) 2013 CDR calculation? What information do you need to answer that question?

• 2.       Miguel, Engineering Degree
• Miguel graduated from your university’s School of Engineering on June 1, 2013. A stellar student and budget-conscious planner, Miguel landed a high-paying job right out of college and promptly paid his loan in full on July 16, 2013. Should his loan be included in your CDR calculation for FY 2013? Why or why not?
• 3.       Gavin, No Degree
• After a year in school, Gavin decided college wasn't for him, and withdrew from your school in May 2012. He defaulted on his loans in July 2013. He later realized college was the best path to a financially stable career, and consolidated his loans in December 2013 in order to regain Title IV eligibility. Should Gavin's loans be included in your school's FY 2013 CDR calculation?

Quiz Answers

• 1.       Emma You need the actual date Emma entered repayment (DER). The key here is that, if the DER is delayed by re-enrolling in school prior to the end of grace, inclusion in a CDR calculation is also delayed. If Emma entered repayment in June 2013—six months after she graduated from your school—and enrolled in graduate school after her grace period, her loan would be included in your calculation for FY 2013. But if Emma started a graduate program at another school before her grace period ended, and entered repayment in October 2013 or later, she will be included in a later fiscal year CDR for your school.

• 2.       Miguel
• Yes, his loan should be included for FY 2013. His estimated date entered repayment (DER) based on graduation is replaced by a new repayment date based on the paid-in-full date. Since Miguel repaid his loan in full on July 16, 2013 (in FY 2013, which runs from October 1, 2012 to September 30, 2013) rather than entering repayment as anticipated in December 2, 2013 (FY 2014), his loan should be included in CDR calculations for FY 2013 rather than for FY 2014. This also holds true for loans discharged due to death, bankruptcy, and disability.
• 3.       Gavin
  Yes. The date his underlying loans entered repayment is the date used in the CDR calculation. In this case, Gavin entered repayment during FY 2013 for the underlying loans on which he defaulted—and these loans should be included in your FY 2013 CDR despite the consolidation in FY 2014.

Important CDR Reminder: Regulatory changes recently announced to the CDR challenge process for the Participation Rate Index do not take effect until 2017!

Dave Bowman is a Regional Director with Great Lakes, serving schools in Kentucky, Tennessee and Southern Ohio. You can reach Dave at (888) 685-1604, or by email at dbowman@glhec.org. Additional information about Great Lakes can be found online at schools.mygreatlakes.org.