A cohort default rate is the percentage of a school's borrowers who enter repayment on certain Federal Family Education Loan (FFEL) Program or William D. Ford Federal Direct Loan (Direct Loan) Program loans during a particular federal fiscal year (FY), October 1 to September 30, and default or meet other specified conditions prior to the end of the next fiscal year.
Under current law, an institution's cohort default rate is calculated by taking the number of students who entered repayment in a given fiscal year and seeing how many of them defaulted on their debt by the end of the following federal fiscal year.
The U.S Department of Education releases official cohort default rates once per year. The FY2011 national cohort consists of borrowers whose first loan repayments came due between October 1, 2010 and September 30, 2011, and who defaulted before September 30, 2012. More than 4.1 million borrowers from nearly 6,000 schools entered into repayment during this period, and nearly 375,000 borrowers defaulted for a national average of 7.1%.
|SVA Annual Default Rate||7.1%||9.1%||7.7|
|Number in Default||59||75||64|
|Number in Repayment||828||817||823|