Reinsurance Trigger Rate
Email
Print
Share
Under the Federal Family Education Loan Program (FFELP), which ended as of July 1, 2010, the U.S. Department of Education (ED) paid reinsurance to guarantors depending on their trigger rate.
The trigger rate represents the total claims reinsured by the U.S. Department of Education for the current federal fiscal year—minus any federally reinsured loans that have been rehabilitated, partially refunded, or repurchased—as a percentage of the dollar amount of loans in repayment as of the end of the last federal fiscal year.:
The reinsurance trigger rate indicates a guarantor’s success in helping borrowers avoid default. The lower a guarantor’s trigger rate, the better its success in default prevention:
Since 2002, ASA has consistently maintained a trigger rate below the national average:
