Cohort Default Rates

Cohort default rate (CDR) is used to monitor the effectiveness of a federal student loan program participant (college, lender, or guarantor) in default prevention. Currently, the CDR measures students who default within 2 years of entering repayment.*

American Student Assistance® (ASA) is consistently ranked among the lowest of all national student loan service providers in CDR—and has beat the national average 12 years in a row, including our 2008 CDR of 5.8%.

*The 2008 Reauthorization of the Higher Education and Opportunity Act changed the CDR definition. Beginning in 2011, CDR will measure the percentage of borrowers who default within the first 3 years of entering repayment.

Impact on Schools

A high CDR can cause an institution to lose its eligibility to administer federal aid. At ASA®, we work with schools to lower their institutional CDRs. For example: 

  • Several schools joined ASA’s Journeys program in 2004.
  • We sent their recent graduates information on loan repayment, financial literacy, and career advice.
  • These schools experienced lower default rates among students with ASA-guaranteed loans than those with loans guaranteed by other agencies.