ASA’s Cohort Default Rate

Cohort default rates (CDRs) monitor effectiveness in default prevention. They track the borrowers within a Federal Family Education Loan Program (FFELP) participant’s portfolio who default within 2 years of entering repayment. The most current CDR tracks borrowers whose first loan repayments came due between October 1, 2006 and September 30, 2007, and who defaulted before October 2008.*

American Student Assistance^® (ASA) is consistently among the lowest in the nation in CDR. At just 3.7%, ASA’s current CDR is the second lowest among all national guarantors, and well below the national average rate of 6.7%.

ASA remains committed to borrowers’ rights and debt management services, especially during these tough economic times. Now more than ever, borrowers need help successfully repaying their student loans.

* The 2008 Reauthorization of the Higher Education and Opportunity Act changed the CDR definition. Beginning in 2011, CDR will measure the percentage of borrowers who default within the first 3 years of entering repayment.