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UCB Studentsí FY 2011 Official Cohort Default Rate Notification Letter


                   UNITED STATES DEPARTMENT OF EDUCATION                        
                         WASHINGTON, D.C. 20202                                 
                              September 2013                                    
                                                                                
                                                                                
University of Colorado Boulder        OPE ID:                        001370     
Regent Adminstrative Center 175, 77   FY 2011 Cohort Default Rate:      4.6     
UCB                                                                             
Boulder, CO 80309-0077                                                          
NL01                                                                            
                                                                                
                                                                                
                                                                                
RE:  FY 2011 Official Cohort Default Rate Notification Letter                   
                                                                                
Dear President:                                                                 
                                                                                
This letter officially notifies you of your school's fiscal year (FY) 2011      
cohort default rate based on Federal Family Education Loan (FFEL) Program       
and/or William D. Ford Federal Direct Loan (Direct Loan) Program loans made     
to students for attendance at your school. Your school's FY 2011 cohort         
default rate is shown above. Please note that even if your school is no         
longer participating in the student loan program(s), federal law requires       
the U.S. Department of Education (Department) to notify your school of its      
cohort default rate.                                                            
                                                                                
Note: The FY 2011 2 year cohort default rate will be the last two year          
cohort default rate released. Next year, in 2014 the FY 2011 three year         
cohort default rate will be the only cohort default rate released.              
                                                                                
Since the Department is no longer mailing hardcopies of the cohort default      
rate notification letters to any schools, please refer to                       
http://www.ed.gov/offices/OSFAP/defaultmanagement/ecdr.html for a               
description of the other files that the Department transmitted to you along     
with this letter.                                                               
                                                                                
WHAT FORMULA DID THE DEPARTMENT USE TO CALCULATE MY SCHOOL'S RATE?              
                                                                                
The Department uses one of three methods for calculation of cohort default      
rates:                                                                          
                                                                                
1.Official non-average rate for schools with 30 or more borrowers entering      
repayment,                                                                      
2.Official average rate for schools with 29 or fewer borrowers entering         
repayment, and                                                                  
3.Unofficial rate for schools with 29 or fewer borrowers entering repayment     
with less than three years of data.                                             
                                                                                
For a complete explanation of the three types of rates, please see              
Chapter 2.1 of the Cohort Default Rate Guide, How the Rates are Calculated,     
available at http://ifap.ed.gov/DefaultManagement/guide/CDRGuidePart2.html.     
                                                                                
WHAT TYPES OF LOANS DID THE DEPARTMENT INCLUDE IN MY SCHOOL'S RATE              
CALCULATION?                                                                    
                                                                                
The Department included three types of loans in your school's cohort            
default rate calculation:                                                       
                                                                                
1)  Federal Stafford Subsidized and Federal Stafford Unsubsidized Loans         
                                                                                
2)  Federal Direct Subsidized and Federal Direct Unsubsidized Loans             
                                                                                
3)  Federal Supplemental Loans for Students (Federal SLS Loans). Although       
rare, it is possible  for Federal SLS loans to be included in your school's     
cohort default rate calculation.                                                
                                                                                
WHAT LOAN RECORD DETAIL REPORT (LRDR) ACCOMPANIES THIS NOTIFICATION LETTER?     
                                                                                
                                                                                
If your school's FY 2011 official cohort default rate is a non-averaged         
rate, the LRDR that accompanies this letter reflects all loans that went        
into repayment during FY 2011. If your school's FY 2011 official cohort         
default rate is an averaged rate, the LRDR that accompanies this letter         
reflects all loans that went into repayment during FY 2011, FY 2010 and FY      
2009.                                                                           
                                                                                
Please note that if a technical problem caused by the Department results in     
an inability to access the data, schools have five business days from the       
receipt of the eCDR notification package to notify Operations Performance       
Division at the email address given below. All schools must meet the            
established submission timeframes for cohort default rate adjustments and       
appeals. The Department will not review adjustments and appeals that any        
school submits outside of the established timeframes.                           
                                                                                
For more information on how to read the loan record detail report, please       
refer to Chapter 2.3 of the Cohort Default Rate Guide, Reviewing the Loan       
Record Detail Report, available at                                              
http://ifap.ed.gov/DefaultManagement/guide/CDRGuidePart2.html.                  
                                                                                
WHAT SANCTIONS AND BENEFITS APPLY TO MY SCHOOL BASED ON THIS RATE?              
                                                                                
According to the Higher Education Act of 1965 (HEA), as amended, the Higher     
Education Reconciliation Act of 2005 (HERA), Pub.L.109-71 and the               
Department's regulations, your school is not subject to any sanctions based     
on your school's FY 2011 cohort default rate. However, if your school's         
official FY 2011 cohort default rate is 25.0 percent or greater, the            
Department may provisionally certify your school when your school applies       
for recertification to participate in the Federal Student Aid Programs. For     
more information about provisional certification, please refer to 34 C.F.R.     
Section 668.16(m)(1) and (2)(i) or contact the School Participation             
Management Division at 202-377-3173.                                            
                                                                                
If your school's most recent official cohort default rate is less than 5.0      
percent and your school is an eligible home institution that                    
certifies/originates a loan to cover the cost of attendance in a study          
abroad program, your school is eligible for this benefit. Your school may       
disburse/deliver loan proceeds in a single installment and may choose to        
release loan proceeds to first-year, first-time borrowers prior to 30           
calendar days after the first day of the borrower's program of study. Once      
your school receives notice from the Department that your school's official     
cohort default rate is 5.0 percent or greater, this benefit will end within     
30 calendar days of the notification.                                           
                                                                                
Institutions with a cohort default rate of less than 15.0 percent for each      
of the three most recent fiscal years for which data are available,             
including eligible foreign institutions, may disburse, in a single              
installment, loans that are made for one semester, one trimester, one           
quarter, or a four-month period.  Such an institution is also no longer         
required to delay the delivery or disbursement of the first disbursement of     
a loan for 30 days for first-time, first-year undergraduate borrowers.          
                                                                                
Once your school receives notice from the Department that your school's         
official cohort default rate is 15.0 percent or greater, this benefit will      
end within 30 calendar days of the notification.                                
                                                                                
For more information on the sanctions and the benefits associated with          
official cohort default rates, please refer to Chapter 2.4 of the Cohort        
Default Rate Guide, Cohort Default Rate Effects, available at                   
http://ifap.ed.gov/DefaultManagement/guide/CDRGuidePart2.html.                  
                                                                                
WHY DOES THIS LETTER SAY THAT MY SCHOOL IS NOT SUBJECT TO SANCTIONS BUT MY      
RATES EXCEED THE SANCTION THRESHOLD?                                            
                                                                                
If your school has official FY 2011, FY 2010, and FY 2009 cohort default        
rates that are 25.0 percent or greater or your school has an official FY        
2011 cohort default rate that is greater than 40.0 percent, your school is      
NOT subject to the loss of FFEL Program, Direct Loan Program, and/or            
Federal Pell Grant Program eligibility because your school met one or more      
of the following criteria:                                                      
                                                                                
|-------------------------------------------|-----------------------------|     
|FY 2011, FY 2010, FY 2009 Cohort           |FY 2011 Cohort Default       |     
|      Default Rates >= 25.0%               |    Rate > 40.0%             |     
|-------------------------------------------|-----------------------------|     
|At least two of your schools three most   |Your schools FY 2011 cohort |     
|recent cohort default rates are official   |default rate is an official  |     
|average cohort default rates and would be  |averaged cohort default rate.|     
|less than 25.0 percent if the Department   |                             |     
|had calculated the rate using the data for |                             |     
|that cohort fiscal year alone.             |                             |     
|-------------------------------------------|-----------------------------|     
|Thirty or fewer borrowers entered into repayment during your schools    |     
|three most recent official cohort default rates.                         |     
|-------------------------------------------------------------------------|     
|Your school submitted a successful participation rate index              |     
|challenge/appeal based on your schools draft FY 2011 cohort default     |     
|rate, official FY 2010 cohort default rate, or official FY 2009          |     
|cohort default rate.                                                     |     
|-------------------------------------------------------------------------|     
|Your school entered into a settlement agreement with the U.S.            |     
|Department of Education that supersedes any sanctions the Department     |     
|would apply based on cohort default rate calculations.                   |     
|-------------------------------------------------------------------------|     
                                                                                
WHAT RIGHTS DOES MY SCHOOL HAVE TO APPEAL THIS RATE                             
INFORMATION?                                                                    
                                                                                
Based on your school's FY 2011 cohort default rate, your school may be          
eligible to submit the following adjustments/appeals:                           
                                                                                
Uncorrected Data Adjustment                                                     
http://ifap.ed.gov/DefaultManagement/guide/CDRGuidePart4.html                   
                                                                                
Loan Servicing Appeal                                                           
http://ifap.ed.gov/DefaultManagement/guide/CDRGuidePart4.html                   
                                                                                
New Data Adjustment                                                             
http://ifap.ed.gov/DefaultManagement/guide/CDRGuidePart4.html                   
                                                                                
Averaged Rates Appeal                                                           
http://ifap.ed.gov/DefaultManagement/guide/CDRGuidePart4.html                   
                                                                                
Thirty-or-fewer Borrowers Appeal                                                
http://ifap.ed.gov/DefaultManagement/guide/CDRGuidePart4.html                   
                                                                                
All Uncorrected Data Adjustments and New Data Adjustments must be made          
through the eCDR Appeals application. Unless other instructions have been       
provided via an IFAP announcement, the Loan Servicing Appeal will continue      
to be submitted via hard copy. The Averaged Rates Appeal and Thirty-or-         
fewer Borrowers Appeal will continue to be submitted via hard copy. The         
eCDR Appeals application, as it is known, allows schools to electronically      
submit certain challenge/ adjustment requests during the specified              
timeframes and allows data managers (guaranty agency or Federal Loan            
Servicer) and Federal Student Aid (FSA) personnel to electronically view        
and respond to these challenge/adjustment requests. The application tracks      
the entire life cycle of each request from the time the case is submitted       
until the time a decision is made and the case is closed.                       
                                                                                
School users will now have access to a table listing all adjustments for        
which a data manager has requested additional information. This table will      
be included in the school's Current Status Report, available by selecting       
the Report tab.                                                                 
                                                                                
It has come to FSA's attention that a number of schools are challenging         
data in the school's cohort default rate based on an incorrect                  
understanding of the cohort default rate calculation. This results in an        
unnecessary increase in the workload for the schools, data managers, and        
FSA. The following are some scenarios that have been noted, along with an       
explanation of why these allegations are considered invalid based on the        
current logic for the cohort default rate calculation.                          
                                                                                
1.School requests that borrower be removed from numerator as borrower           
defaulted, then paid the loan in full (either through consolidation or          
another method).  Borrower will continue to be counted as a defaulted           
borrower for cohort default rate purposes.  Current regulations only allow      
for a defaulted loan to be removed from default for cohort default rate         
purposes if the borrower successfully rehabilitated the loan within the         
cohort period, or, for FFELs held by a guaranty agency, if the lender           
repurchased the loan due to the claim being submitted or paid in error.         
See 34 CFR Sections 668.183(c)(2) and 668.202(c)(2).                            
                                                                                
2.School alleges that borrower be removed from numerator due to an              
incorrect date entered repayment that is resulting in the default date for      
the borrower being less than 360 days from the corrected date entered           
repayment. This allegation type applies to Direct Loans or loans that were      
PUT to the Department only, since FFELs held by a guaranty agency use the       
claim paid date as the default date, not the 360th day of delinquency. If a     
data manager agrees to correct the date entered repayment, they will update     
the default date to the 360th day of delinquency based on the new date          
entered repayment. However, if the updated date entered repayment and           
default date still fall within the cohort period, the borrower will             
continue to be counted in both the numerator/denominator. If the updated        
date entered repayment causes the updated default date to fall outside of       
the cohort period, borrower will be removed from the numerator only. If the     
updated date entered repayment falls outside of the cohort period, borrower     
will be removed from both the numerator/denominator.                            
                                                                                
3.Borrower is included in more than one cohort year. This may be correct,       
based upon the situation. If the borrower had a break in enrollment of          
greater than six months, then the borrower will enter repayment on the          
loans from the first period of enrollment six months and one day after the      
borrower's last date of attendance (LDA) or less than half-time date            
(LTHT), then will receive another six month grace period based on the LDA       
or LTHT date of the second period of enrollment. This may result in the         
borrower being included in more than one cohort year. If the borrower's         
break in enrollment was less than six months, this is considered continuous     
enrollment and the borrower should be in only one cohort year.                  
                                                                                
4.School was involved in a change of affiliation/merger and has borrowers       
counted more than once in the cohort default rate. A borrower may be            
counted more than once in the school's cohort default rate if the borrower      
had loans certified under two or more of the OPE-IDs that were involved in      
the change of affiliation/merger. Please see page 2.5-2 of the CDR Guide.       
                                                                                
If a school has any questions regarding the cohort default rate                 
calculation, Chapter 2.1 of the CDR Guide includes a thorough explanation       
of how the rates are calculated.  Additionally, a school involved in a          
change of affiliation/merger should read Chapter 2.5 of the CDR Guide for       
an explanation of how the change of affiliation/merger will affect the          
cohort default rates of all of the schools involved.                            
                                                                                
WHAT TOOLS AND INFORMATION ARE AVAILABLE TO HELP MONITOR AND MANAGE MY          
SCHOOL'S COHORT DEFAULT RATE?                                                   
                                                                                
|------------|-----------------------------------------------|-----------|      
|   Tools    |                    Description                |Contact    |      
| Information|                                               |Information|      
|------------|-----------------------------------------------|-----------|      
|Cohort      |http://www.ifap.ed.gov/DefaultManagement/      |May be     |      
|Default     |finalcdrg.html. Reference tool designed by U.S.|printed    |      
|Rate Guide  |Dept of Education to help schools understand   |from CDR   |      
|            |cohort default rates and various challenge/    |Guide Link |      
|            |appeal/adjustment processes. The electronic    |           |      
|            |electronic version was revised September 2013  |           |      
|            |and may be found online.                       |           |      
|------------|-----------------------------------------------|-----------|      
|Default     |http://ifap.ed.gov/DefaultManagement/          |Operations |      
|Prevention  |DefaultManagement.html. Contains valuable      |Performance|      
|and Mgmt    |information for schools, guaranty agencies and |Division   |      
|Website     |borrowers. Contains link for eCDR process,     |202-377-   |      
|            |including enrollment procedures and downloading|4259       |      
|            |instructions.                                  |           |      
|------------|-----------------------------------------------|-----------|      
| eCDR       |Electronic Cohort Default Rate Appeals Process |Operations |      
| Appeals    |                                               |Performance|      
|            |eCDR Appeals facilitates the exchange of       |Division   |      
|            |information between parties for three of the   |202-377-   |      
|            |challenge/adjustment processes:Incorrect Data  |4259       |      
|            |Challenge (IDC), Uncorrected Data Adjustments  |           |      
|            |(UDA), and New Data Adjustments (NDA). The     |           |      
|            |application allows schools to electronically   |           |      
|            |submit these challenges and adjustment requests|           |      
|            |during a cohort default rate cycle, and allows |           |      
|            |data managers (guaranty agency or Direct Loan  |           |      
|            |Servicer) and Federal Student Aid (FSA)        |           |      
|            |personnel to electronically view and respond to|           |      
|            |challenges and adjustment requests. The        |           |      
|            |application tracks the entire life cycle of    |           |      
|            |each challenge/adjustment request from the time|           |      
|            |the case is submitted until the time a decision|           |      
|            |is made and the case is closed.                |           |      
|            |                                               |           |      
|            |All users must complete the registration       |           |      
|            |process to gain access to eCDR Appeals. The    |           |      
|            |eCDR Appeals homepage contains a link to the   |           |      
|            |Registration and User Account Guide, which     |           |      
|            |gives step-by-step instructions for            |           |      
|            |registration. Links to the User Guides for the |           |      
|            |three processes can also be found here, as well|           |      
|            |as a link to the Cohort Default Rate Guide.    |           |      
|------------|-----------------------------------------------|-----------|      
|Late Stage  |Process whereby schools work in collaboration  |Direct Loan|      
|Delinquency |with servicers or guarantors to identify and   |Servicer   |      
|Assistance  |provide counseling to borrowers more than 240  |888-877-   |      
|(LSDA)      |days late on loan repayment. For Direct Loan   |7658 (can  |      
|            |schools, the website https://www.myedaccount.  |guide you  |      
|            |com/ identifies borrowers whose impending      |through the|      
|            |default will impact the school's cohort default|process)   |      
|            |rate.                                          |           |      
|------------|-----------------------------------------------|-----------|      
|National    |https://www.nlsdsfap.ed.gov. Offers schools the|NLSDS      |      
|Student Loan|opportunity to request reports in extract or   |Customer   |      
|Data System |preformatted formats that can be retrieved     |Service at |      
|(NLSDS)     |through the Students Aid Internet Gateway(SAIG)|(800) 999- |      
|            |account associated with the NLSDS User Id that |8219       |      
|            |requested the report. Listed below are some    |           |      
|            |reports NLSDS offers.                          |           |      
||----------------------------------------------------------------------||      
||Report  |  Brief Description of the NLSDS Reports                     ||      
||name    |                                                             ||      
||--------|-------------------------------------------------------------||      
||        |School CDR Rate History Report provides school with a copy   ||      
|| DRC035 |of the Loan Record Detail Report that lists students in      ||      
||        |default/repayment during the cohort period indicated.        ||      
||--------|------------------------------------------------------------ ||      
||        |Enrollment Reporting Summary Report provides school users    ||      
|| SCHER1 |with the chronology of enrollment reporting events.          ||      
||--------|------------------------------------------------------------ ||      
||        |Date Entered Repayment Report provides school users with a   ||      
|| DER001 |list of student borrowers with loan history who are          ||      
||        |scheduled to go into repayment during a specified date range.||      
||--------|------------------------------------------------------------ ||      
||        |School Repayment Information Loan Detail provides school     ||      
|| DRC015 |users with the current repayment status of certain borrowers ||      
|| DRC016 |in FFEL/DL loan programs who attended a school during a      ||      
||        |specific period.                                             ||      
||--------|------------------------------------------------------------ ||      
||        |Exit Counseling Report provides school users with exit       ||      
|| SCH01B |counseling information on students who attended the          ||      
||        |requesting school and whose anticipated completion dates fall||      
||        |within a specified date range.                               ||      
||--------|-------------------------------------------------------------||      
||        |The Delinquent Borrower Report (DELQ01) provides School users||      
|| DELQ01 |a report of borrowers who have been reported as delinquent in||      
||        |making loan payments to one of the federal loan servicers.   ||      
||--------|------------------------------------------------------------ ||      
||        |The School Portfolio Report (SCHPR1) provides ED users with  ||      
|| SCHPR1 |with information about all Direct Loan and/or FFEL program   ||      
||        |loans for a specified school.                                ||      
|---------|--------------------------------------------------------------|      
                                                                                
Additional tools and information may be found in Chapter 3.2 of the Cohort      
Default Rate Guide, Monitoring Loan Repayment Status Year-Round, available      
at http://ifap.ed.gov/DefaultManagement/guide/CDRGuidePart3.html.               
                                                                                
If you have any questions about this letter that are not answered in the        
Cohort Default Rate Guide, please contact Operations Performance Division       
via email at FSA.Schools.Default.Management@ed.gov or via phone at (202)        
377-4259.                                                                       
                                                                                
Please be sure to include your Office of Postsecondary Education                
Identification Number (OPE ID) on all correspondence, as shown on page one      
of this letter.                                                                 
Sincerely,                                                                      
                                                                                
                                                                                
Katrina Turner                                                                  
Director                                                                        
Operations Performance Management Services                                      
Business Operations                                                             
                                                                                
OPEID:          001370                                                          
                                                                                
School Name:    University of Colorado Boulder                                  
City and State: Boulder, CO 80309-0077                                          
                                                                                
The Department's records indicate the following with regard to your             
school's loan program participation:                                            
                                                                                
                                                                                
WITHDRAWN FFEL                   CERTIFIED DIRECT LOAN                          
                                                                                
Based on borrower participation in the FFEL Program and/or Direct Loan          
Program at your school, here are the FY 2011, FY 2010 and FY 2009 official      
cohort default rates on record for your school:                                 
                                                                                
                                                                                
Fiscal Year 2011                                                                
(1) Number of borrowers entering repayment:  4575                               
                                                                                
(2) Number of borrowers who entered repayment and defaulted: 212                
(3) Official Cohort Default Rate:   4.6%                                        
(4) Rate Type: DU                                                               
                                                                                
Fiscal Year 2010                                                                
(1) Number of borrowers entering repayment:  3904                               
(2) Number of borrowers who entered repayment and defaulted: 139                
                                                                                
(3) Official Cohort Default Rate:   3.5%                                        
(4) Rate Type: DU                                                               
                                                                                
Fiscal Year 2009                                                                
(1) Number of borrowers entering repayment:   4161                              
(2) Number of borrowers who entered repayment and defaulted: 94                 
                                                                                
(3) Official Cohort Default Rate:   2.2%                                        
(4) Rate Type: DU                                                               
                                                                                
The rate type indicates the category of loans that the Department included      
in your school's cohort default rate:                                           
FL-FFEL Program loans only                                                      
DL-Direct Loan Program loans only                                               
DU- both FFEL Program and Direct Loan Program loans                             
                                                                                
For additional information on the methodology that the Department uses to       
calculate cohort default rates, please refer to the Chapter 2.1 of the          
Cohort Default Rate Guide, How the Rates are Calculated, available at           
http://ifap.ed.gov/DefaultManagement/guide/CDRGuidePart2.html.                  

PBA ref: L:\IR\emgt\FA\DefaultFY10Final2Year.txt

Last revision 10/01/13


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