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 3 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 beaten the national average by 54% over the past 4 years (FY2004 – FY2008).

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: 

  • Schools joined ASA’s Journeys program to help with CDR issues.
  • 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.