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PBA Home > Institutional Research & Analysis > Admissions & Financial Aid > UCB Students’ FY 2009 Official Cohort Default Rate Notification Letter UCB Students’ FY 2009 Official Cohort Default Rate Notification Letter
UNITED STATES DEPARTMENT OF EDUCATION
WASHINGTON, D.C. 20202
September 2011
University of Colorado at Boulder OPE ID: 001370
Regent Adminstrative Center 175, 77 FY 2009 Cohort Default Rate: 2.2
UCB
Boulder, CO 80309-0077
NL01
RE: FY 2009 Official Cohort Default Rate Notification Letter
Dear President:
This letter officially notifies you of your school's fiscal year (FY) 2009
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 2009 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.
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 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/04CDRGuidePart2.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 2009 official cohort default rate is a non-averaged
rate, the LRDR that accompanies this letter reflects all loans that went
into repayment during FY 2009. If your school's FY 2009 official cohort
default rate is an averaged rate, the LRDR that accompanies this letter
reflects all loans that went into repayment during FY 2009, FY 2008 and FY
2007.
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/04CDRGuidePart2.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 2009 cohort default rate. However, if your school's
official FY 2009 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.
Beginning October 1, 2011 an institution with a cohort default rate of less
than 15 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/04CDRGuidePart2.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 2009, FY 2008, and FY 2007 cohort default
rates that are 25.0 percent or greater or your school has an official FY
2009 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 2009, FY 2008, FY 2007 Cohort |FY 2009 Cohort Default |
| Default Rates >= 25.0% | Rate > 40.0% |
|-------------------------------------------|-----------------------------|
|At least two of your schools three most |Your schools FY 2009 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 2009 cohort default |
|rate, official FY 2008 cohort default rate, or official FY 2007 |
|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 2009 cohort default rate, your school may be
eligible to submit the following adjustments/appeals:
Uncorrected Data Adjustment
http://ifap.ed.gov/DefaultManagement/guide/04CDRGuidePart4.html
Loan Servicing Appeal
http://ifap.ed.gov/DefaultManagement/guide/04CDRGuidePart4.html
New Data Adjustment
http://ifap.ed.gov/DefaultManagement/guide/04CDRGuidePart4.html
Averaged Rates Appeal
http://ifap.ed.gov/DefaultManagement/guide/04CDRGuidePart4.html
Thirty-or-fewer Borrowers Appeal
http://ifap.ed.gov/DefaultManagement/guide/04CDRGuidePart4.html
Beginning this year with the FY 2009 Official cycle all Uncorrected Data
Adjustments and New Data Adjustments must be made through the eCDR Appeals
application. The Loan Servicing Appeal, 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.
With this release of eCDR Appeals (Release 4.0), 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.
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. Original hardcopy | |
| |mailed with FY 1999 notification letter. The | |
| |electronic version was revised August 2006 and | |
| |may be found online. | |
|------------|-----------------------------------------------|-----------|
|Cohort |The Cohort Default Rate Guide Quick reference |May be |
|Default Rate|at http://ifap.ed.gov/drmaterials/attachments/ |printed |
|Guide Quick |CDRGQuickRef093005FINAL.pdf presents some of |from CDR |
|Reference |the key elements of the Guide in a more |Reference |
| |informal manner to give schools a summary of |Link |
| |what they should do during the draft and | |
| |official cohort default rate cycles. | |
|------------|-----------------------------------------------|-----------|
|Default |http://ifap.ed.gov/DefaultManagement/ |Default |
|Prevention |DefaultManagement.html. Contains valuable |Prevention |
|and Mgmt |information for schools, guaranty agencies and |and |
|Website |borrowers. Contains link for eCDR process, |Management |
| |including enrollment procedures and downloading|202-377- |
| |instructions. |4259 |
|------------|-----------------------------------------------|-----------|
| eCDR |Electronic Cohort Default Rate Appeals Process |Default |
| Appeals | |Prevention |
| |eCDR Appeals facilitates the exchange of |and |
| |information between parties for three of the |Management |
| |challenge/adjustment processes:Incorrect Data |202-377- |
| |Challenge (IDC), Uncorrected Data Adjustments |4259 |
| |(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 http://www.dlservicer |guide you |
| |.ed.gov/ 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/04CDRGuidePart3.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 Division
Business Operations
Enclosures
Note: The Higher Education Opportunity Act (HEOA) enacted on August 8,
2008 made a number of changes to the Federal Student Aid Programs
including timeframes for the calculations of FFEL/DL Cohort Default Rates.
On October 28, 2009, the Department published in the Federal Register the
regulations that will govern the calculation of default rates beginning
with the FY 2009 cohort year. Under the new provisions, an institution's
Cohort Default Rate 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.
The Department will issue the FY 2009 draft 3-Year cohort default in 2012.
The standard 2-Year CDR will continue to be published along with the 3-
Year rates until 2013. Beginning with the FY 2011 cohort default rate in
September 2014, 3 Year rates will be the only official rate and schools
will be subject to benefits and sanctions based solely on these rates.
A trial sample of 3 Year cohort default rates was sent to institutions in
February 2011 so that they could begin to consider what impact this
additional cohort year might have on their default rates. Schools may want
to increase their default rate initiatives in order to maintain cohort
default rates within benefit range and avoid sanction criteria.
More information on 3-Year cohort default rates will be forthcoming.
OPEID: 001370
School Name: University of Colorado at 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 2009, FY 2008 and FY 2007 official
cohort default rates on record for your school:
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
Fiscal Year 2008
(1) Number of borrowers entering repayment: 5113
(2) Number of borrowers who entered repayment and defaulted: 97
(3) Official Cohort Default Rate: 1.8%
(4) Rate Type: DU
Fiscal Year 2007
(1) Number of borrowers entering repayment: 4579
(2) Number of borrowers who entered repayment and defaulted: 84
(3) Official Cohort Default Rate: 1.8%
(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/04CDRGuidePart2.html.
PBA ref: L:/ir/emgt/fa/DefaultFY09Final.docx |
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