The Department of Education (ED) has released draft default cohort rates for 2007. As you know, schools have an opportunity to challenge their draft cohort default rates and/or appeal their official cohort default rates based on a number of circumstances.

HESC understands schools actively work with student borrowers to prevent default and strive to continuously lower their rate. HESC is committed to working with you to ensure that your draft rate accurately reflects your efforts. The following resources and links are provided to assist you with your review.

  • The Cohort Default Rate Guide is now available. The complete challenges, adjustments and appeals timeline is found in Appendix A below. Click here or on the image below for a full-size version.
  • To streamline the appeal process ED has implemented Electronic Cohort Default Rate Appeals (eCDR Appeals). Click here for the instructions. Many schools who now use this process find it to be simple and efficient.
  • Schools may obtain an electronic loan record detail report at the National Student Loan Data System (NSLDS) Web site. A loan record detail report contains the data used to calculate a schools FY2007 official cohort default rate.

Timeframe Is Critical for Incorrect Data Challenge

The timeframe is critical when submitting an Incorrect Data Challenge (IDC). The begin date for challenging a school’s FY2007 Draft Cohort Default Rate under 34 CFR Part 668, Subpart M began on Wednesday, February 18, 2009. Schools must submit the Incorrect Data Challenge within 45 calendar days of the timeframe begin date. An IDC preserves the schools right to submit an Uncorrected Data Adjustment after the final cohort is released. An Uncorrected Data Adjustment must be completed within 30 calendar days after the official cohort rate has been published and is submitted directly to ED by the school.

HESC Is Ready to Work With You

HESC is ready to work with your institution throughout the appeal process. Please contact Sarla Singh at ssingh@hesc.org, or (518) 473-1670 should you have any questions or need assistance.

Please direct questions or comments regarding the use of HESC electronic products or services to Priority Services at priorityservices@hesc.org. Direct any technical problems with HESC electronic services to the HESC Help Desk at 518-473-0550.

To contact HESC toll free, call 1-866-431-HESC (1-866-431-4372) and follow the menu prompts.

Appendix A

Image of the Challenges, Adjustments and Appeals Timeline for cohort default rate.