Three-year companion

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Three-year associate. Plan. What is a Partner What advances are incorporated Reauthorization Companion Computation Courses of events What's Next Outline. What is an associate default rate?. The quantity of borrowers who entered reimbursement in a FY

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Slide 1

Three-year accomplice Copyright 2008 National Student Loan Program

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Agenda What is a Cohort What credits are incorporated Reauthorization Cohort Calculation Time Lines What's Next Summary

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What is a partner default rate? The quantity of borrowers who entered reimbursement in a FY Tracking borrowers entering reimbursement in that FY to figure out whether they defaulted in that FY or consequent FY * FY2008: Oct. 1, 2007 – Sept. 30, 2008

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What credits are incorporated? Government Stafford Subsidized Unsubsidized Federal SLS Federal Direct Subsidized Unsubsidized

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What credits are excluded? Government Plus Federal Direct PLUS Federal Grad PLUS Federal Direct Grad PLUS Perkins

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Consolidation????? Not straightforwardly incorporated into the associate default rate count If defaulted will be incorporated into the numerator of the accomplice default rate estimation

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Reauthorization – FY09 companion Authorized the standard from a two year estimation to a three year estimation Single Disbursement Rule & 30 day defer Increased from 10 percent to 15 percent Default Rate Threshold Increased from 25 percent to 30 percent

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Three-year Cohort Calculation The Non Average Rate equation: # borrowers entering reimburse in partner FY and defaulted in the accomplice FY or the consequent two FYs * _________________________________________________ # borrowers entered reimburse in the accomplice FY** * Oct. 1, 2008 – Sept. 30, 2011 ** Oct. 1, 2008 – Sept. 30, 2009

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What's in the numerator? All partner advances with a default date in the three-year accomplice period – checked by borrower at your school default for FFELP is controlled as a matter of course claim installment date

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What's in the denominator? All advances entering reimburse in accomplice year– checked by borrower can incorporate borrowers with credits conceded, held back, rehabbed, passing, incapacity and chapter 11 Enter Repayment Oct. 1, 2008 Sept. 30, 2009 Leave School Feb. 2009 Mar. 2008

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Default timetable 60 days to build up the primary installment 270 misconduct days 90 days for the bank to record a default assert 60+ days from there on for the underwriter to audit and pay the default guarantee

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The clock is ticking – now! FY2009 is the initial three-year accomplice rate numerator = 2009 + 2010+2011 denominator = 2009 default rate reported in 2012 Calculated by ED in light of NSLDS information

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Cohort computation dates Draft – normally first week of January and discharged mid-February 45 days to advance w/underwriter for mistaken information Official – commonly a week ago of July and discharged mid-September 30 days to request w/ED for uncorrected information change (claimed after draft yet did not get settled in NSLDS) 15 days to bid w/underwriter for new information conformity (seemed one path in draft however is diverse in last)

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What next? Expect your three-year partner rate to be higher Be proactive: guarantee exact NSLDS information survey your accomplice information for precision

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What next? Use Default Prevention Tools Financial Literacy DAAR CARS Cohort Appeal Process

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Summary What is a Cohort What advances are incorporated Reauthorization Cohort Calculation Time Lines What's Next

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Contact data National Student Loan Program 1300 O St. Lincoln, NE 68508 Brian Ghanoo Regional Director of Business Development