As the Department of Education moves to a three-year cohort default rate (CDR) reporting structure, it is imperative that colleges and universities build strategic initiatives to combat increasing CDR’s. This series of tips is designed to provide your school with helpful information to improve your financial aid cohort default rates. Check back daily for the next tip!
Measure, analyze, and control – know your student population
Do not wait until formal CDR reports are published! Ongoing monitoring and analysis of your school’s borrower population, based on CDR years, is critical to positively impact your rates and minimize risk.
- Understand your schools student population by analyzing prior cohort default data
- Identify student borrowers that are at higher risk of default whether based on program of study, non-completion of degree program, amount borrowed, etc.
- Implement processes and controls to increase student contact, financial education, and awareness of their outstanding debt
- Ensure ongoing data integrity through servicer, guarantor, and NSLDS reporting
It is not enough to simply review your CDR when required; you must constantly monitor your population, assess risk and strategy, and implement process controls to reduce issues and duplicate desired results.
Check back tomorrow for Tip #3
Comments are closed.