You Have Your Draft Cohort Default Rate – Now What?

Submitted by: Shannon Cross, USA Funds account executive

Now that you’ve received your school’s draft 2012 cohort default rate, where do you go from here?

Whether you’re pleased with your draft rate or wondering how to improve, now is a great time to evaluate your default prevention efforts. Start by considering these three questions:

1.      Do you have a goal? If you have an idea of the cohort default rate you’d like your school to achieve, it’s much easier to determine whether you’re succeeding in your default prevention efforts. And having a specific number in mind keeps you focused on what you’re trying to accomplish. A good place to start is by considering the rates of institutions similar to yours.

2.      Do you have a plan? If your school has a default prevention plan in place, does your draft rate suggest that the plan is on point? Do you need to evaluate the plan’s contents and how your school is following it? If your school doesn’t have a formal default prevention plan, now’s the time to establish one — regardless of whether you’re federally required to do so. Take a look at the U.S. Department of Education’s Sample Default Prevention and Management Plan.

3.      Should you appeal? The time period for challenging your draft cohort default rate begins March 3, and you have 45 days to submit your challenge. But should you? Consider the time and effort involved in submitting a challenge in the allotted time frame, and the resources you have available for the work. Then weigh those factors against the potential impact that the challenge could have on your rate.

Do you need assistance with establishing your default prevention goals and plans and managing your cohort default rate? Visit the USA Funds website at www.usafunds.org.