GHEAC Mardi Gras: Parade of Service 2003 GHEAC Annual Conference March 4 - 5, 2003 Default Appeals Process Marcia Coleman, Default Prevention Coordinator

Session Outline Cohort Default Rate (CDR) eCDR Cohort Default Rate Calculation Draft Cohort Default Rate Process Quick Steps for Appealing Your Default Rate Default Analysis Software 2003 GHEAC Annual Conference

A cohort default rate is the percentage of a school’s borrowers who enter repayment on certain Federal Family Education Loan (FFEL) Program and/or William D. Ford Federal Direct Loan (Direct Loan) Program loans during a particular Federal fiscal year (FY), October 1 – September 30, and default or meet other specified conditions prior to the end of the next fiscal year. Cohort Default Rate 2003 GHEAC Annual Conference

FY is October 1 – September 30 Ex.FY 2001 October 1, 2000 through September 30, 2001 Ex. FY 2002 October 1, 2001 through September 30, 2002 Fiscal Year (FY) 2003 GHEAC Annual Conference

Began February 2003 Schools must sign up for it at Customer Service Easier to manipulate and sort data Requirement – Paperwork Reduction Act Save taxpayer’s money Saves the environment eCDR 2003 GHEAC Annual Conference

Customer Service Easier to manipulate and sort data Requirement – Paperwork Reduction Act Save taxpayer’s money Saves the environment eLRDR 2003 GHEAC Annual Conference

Published August 2001 Draft & Official Guides combined Designed to assist schools with FFELP and Direct Loan cohort default rate data Used as reference tool in understanding rates and processes Will remain effective until further notice Electronic version located at or Changes inserted into booklet as supplements Cohort Default Rate Guide 2003 GHEAC Annual Conference

Calculated twice per year 2003 Calculation and Rate Release Schedule Draft FY 2001 rates: Calculate – January 11, 2003 Release – February 18, 2003 Official FY 2001 rates: Calculate – August 2, 2003 Release – September 15, 2003 Cohort Default Rate Calculation 2003 GHEAC Annual Conference

Non-Average Rate Calculation: Number of Borrowers who entered repayment in the cohort fiscal year and defaulted or met other specified conditions in the cohort default period. Number of Borrowers who entered repayment in the cohort fiscal year Average Rate Calculation: Number of Borrowers who entered repayment in the cohort fiscal year and the two years preceding cohort fiscal years and who defaulted or met other specified conditions in the cohort default period Number of Borrowers who entered repayment in the cohort fiscal year and the two preceding cohort fiscal years. Cohort Default Rate Calculation 2003 GHEAC Annual Conference

Incorrect Data Challenge Who:Any school that received a draft cohort default rate When:During the DRAFT release period What:Enables a school to request a correction to what it believes to be inaccurate data contained in the LRDR or eLRDR Participating Rate Index Challenge Who:Any school that can demonstrate that the # of students who obtains loans is very low in relation to the # of regular students at the school When:During DRAFT release period What:School not subject to sanction when next official cohort default rate is published. Types of CDR Appeals 2003 GHEAC Annual Conference

Uncorrected Data Adjustment Who:Any school that submitted a timely challenge of its draft rate When:During OFFICIAL release period only after data manager has agreed to make changes and the changes are not reflected on the official LRDR or eLRDR. What:Schools cohort default rate will be recalculated using corrected data. New Data Adjustment Who:Any school that submitted a timely challenge of its draft rate When:During OFFICIAL release period only after data manager has agreed to make changes and the changes are not reflected on the official LRDR or eLRDR. What:Schools cohort default rate will be recalculated using corrected data. Types of CDR Appeals 2003 GHEAC Annual Conference

Erroneous Data Appeal Who:Any school whose official CDR includes new and/or disputed data, must be subject to rate sanctions, or other successful appeals will result in a recalculated CDR below sanction threshold. When:During the OFFICIAL release period What:Will result in the recalculation of CDR using corrected data. Loan Servicing Appeal Who:Any school receiving official CDR When:During the OFFICIAL release period What:Loan may be removed from CDR which may or may not lower CDR. Types of CDR Appeals 2003 GHEAC Annual Conference

Other types of Appeals: (During OFFICAL Rate Release Period) Economically Disadvantage Appeal Participation Rate Index Appeal Average Rates Appeal Thirty-or-Fewer Borrowers Appeal Types of CDR Appeals 2003 GHEAC Annual Conference

Gather your data LRDR or eLRDR NSLDS Determine if you will appeal your CDR Establish network of key players and responsibilities Develop a school’s records spreadsheet (see example) Use school’s internal data systems and NSLDS to compare data Use monthly repayment reports to verify data Quick Steps for Appealing Your Default Rate 2003 GHEAC Annual Conference

Compare Your Data –Change in enrollment status –Canceled loans –Student delinquency status –Student transfers –Cured loans –NSLDS reports –Old SSCR’s Data Sharing Correcting Data Quick Steps for Appealing Your Default Rate 2003 GHEAC Annual Conference

See Display Default Analysis Software 2003 GHEAC Annual Conference

Web Guide or Default Management Contact info: Phone: Mail: 400 Maryland Avenue, SW, Washington, DC Commercial: 830 First Street, NE, Washington, DC CDR Resources 2003 GHEAC Annual Conference

Regulations 34 CFR , App A & B to Subpart M of Part 668 Handbook pages 2-56, , 8-5, 8-6, 8-36 Partner Letters and CDR Resources 2003 GHEAC Annual Conference

Georgia Higher Education Assistance Corporation U.S. Department of Education Schools Portal and IFAP Default Collections Partner Services and Portal Students Portal NSLDS Case Management Other Resources 2003 GHEAC Annual Conference

Contact GHEAC’s Default Prevention Area Contact:Marcia Coleman, Coordinator Phone: Address:2082 East Exchange Place, Suite 220 Tucker, GA Web: CONTACT 2003 GHEAC Annual Conference

THANK YOU FOR ATTENDING Q & A’s 2003 GHEAC Annual Conference