ED’s Electronic Announcements (EAs) on IFAP: GENERAL AND VARIED ANNOUNCEMENTS
EA – Posted February 18, 2014 – (Loans). FY 2011 3-Year Draft Cohort Default Rates Distributed February 18, 2014
The FY 2011 3-Year Draft Cohort Default Rates were distributed on February 18, 2014. Under regulations published October 28, 2009, beginning with the FY 2009 cohort year, a school’s Cohort Default Rate (CDR) is calculated as the percentage of borrowers in the cohort who default before the end of the second fiscal year following the fiscal year in which the borrowers entered repayment. This, in essence, creates the 3-year CDR. ED no longer calculates a 2-year CDR. Beginning with 2014, only 3-year rates are published since three 3-year rates have now been calculated (FY 2009 published in 2012, FY 2010 published in 2013, and FY 2011 published in 2014).
Schools should review this Electronic Announcement to be reminded of the impact that will be incurred if a school’s FY 2011 official 3-year CDR is equal to or greater than 40% when the official CDR is published in September 2014, or if the school’s 3-year CDR has been 30% or greater for three years.
The time period for challenging a school’s FY 2011 3-Year Draft Cohort Default Rate under 34 C.F.R Part 668, Subpart M began on Wednesday, February 26, 2014 for all schools. The deadline for submitting an appeal was 45 days from that date. Schools that did not have a borrower in repayment, during the current or any of the past cohort default rate periods, did not receive a FY 2011 3-year draft cohort default rate notification package. These schools are considered to have no cohort default rate data and no cohort default rate.
EA – Posted February 24, 2014 – (General). Reminder to Institutions of NSLDS Enrollment Reporting Responsibilities
ED reminds Title IV eligible schools of the importance of accurate and timely reporting of students’ enrollment status information to the National Student Loan Data System (NSLDS). While ED has long considered this an important topic as evidenced via audits and program reviews, it is becoming even more important in light of the upcoming changes in reporting requirements to accommodate the 150% Direct Subsidized Loan Limit provisions. Additionally, it is important to ED because of the requirement of the Consolidated Appropriations Act of 2014 (effective January 17, 2014) that the Department of Education report to Congress on enrollment and graduation of Federal Pell Grant recipients on an ongoing basis. Therefore, for numerous reasons it is important, and will be a focus of compliance monitoring, that schools ensure accuracy and timeliness in reporting students’ enrollment status information. ED emphasizes that it is the school’s responsibility to ensure this accuracy and timeliness of reporting. The DCL also offers reminders about the resources available related to the NSLDS enrollment reporting requirements, e.g., the NSLDS Enrollment Reporting Guide. See also the EA dated February 27, 2014, for more information related to enrollment reporting.