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1 Issue 8

2 Amendatory Language

3 Team II – School-based Loan Issues

4 x. Section 668.16 is amended by:

5 A. Revising paragraph (m).

6 B. Revising the authority citation at the end of the 

7 section.

8 The revisions read as follows:

9 §668.16 Standards of administrative capability.

10 * * * * *

11 (m)(1) Has a cohort default rate--

12 (i) That is less than 25 percent for each of the three 

13 most recent fiscal years during which rates have been issued, to 

14 the extent those rates are calculated under subpart M of this 

15 part;

16 (ii) That is less than 30 percent for at least two of the 

17 three most recent fiscal years during which the Secretary has 

18 issued rates for the institution under subpart N of this part; 

19 and

20 (iii) As defined in 34 CFR 674.5, on loans made under the 

21 Federal Perkins Loan Program to students for attendance at that 

22 institution that does not exceed 15 percent.

23 (2)(i) However, if the Secretary determines that an 

24 institution's administrative capability is impaired solely 
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1 because the institution fails to comply with paragraph (m)(1) of 

2 this section, and the institution is not subject to a loss of 

3 eligibility under §§668.187(a) or 668.206(a), the Secretary 

4 allows the institution to continue to participate in the Title 

5 IV, HEA programs. In such a case, the Secretary may 

6 provisionally certify the institution in accordance with 

7 §668.13(c) except as provided in paragraphs (m)(2)(ii) and 

8 (m)(2)(iii) of this section.

9 (ii) An institution that fails to meet the standard of 

10 administrative capability under paragraph (m)(1)(ii) based on 

11 two cohort default rates that are greater than or equal to 30 

12 percent but less than 40 percent is not placed on provisional 

13 certification under paragraph (m)(2)(i) of this section--

14 (A) If it has timely filed a request for adjustment or 

15 appeal under §§668.209, 668.210, or 668.212 with respect to the 

16 second such rate, and the request for adjustment or appeal is 

17 either pending or succeeds in reducing the rate below 30 

18 percent; or

19 (B) If it has timely filed an appeal under §§668.213 or 

20 668.214 after receiving the second such rate, and the appeal is 

21 either pending or successful. 

22 (iii) The institution may appeal the loss of full 

23 participation in a Title IV, HEA program under paragraph 

24 (m)(2)(i) of this section by submitting an erroneous data appeal 
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1 in writing to the Secretary in accordance with and on the 

2 grounds specified in §§668.192 or 668.211 as applicable;

3 * * * * *

4 (Authority: 20 U.S.C. 1082, 1085, 1094, and 1099c)

5 x. Revise the subpart heading of subpart M to read as 

6 follows:

7 Subpart M--Two Year Cohort Default Rates

8 x. Section 668.181 is revised to read as follows:

9

10 §668.181 Purpose of this subpart.

11 (a) General. Your cohort default rate is a measure we use 

12 to determine your eligibility to participate in various Title 

13 IV, HEA programs. We may also use it for determining your 

14 eligibility for exemptions, such as those for certain 

15 disbursement requirements under the FFEL and Direct Loan 

16 Programs. This subpart applies solely to cohorts, as defined in 

17 §§668.182(a) and 668.183(b), for fiscal years through 2011. For 

18 these cohorts, this subpart describes how cohort default rates 

19 are calculated, some of the consequences of cohort default 

20 rates, and how you may request changes to your cohort default 

21 rates or appeal their consequences. Under this subpart, you 

22 submit a ―challenge‖ after you receive your draft cohort default 

23 rate, and you request an ―adjustment‖ or ―appeal‖ after your 

24 official cohort default rate is published. 
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1 (b) Cohort Default Rates. Notwithstanding anything to the 

2 contrary in this subpart, we will issue annually two sets of 

3 draft and official cohort default rates for fiscal years 2009, 

4 2010, and 2011. For each of these years, you will receive one 

5 set of draft and official cohort default rates under this 

6 subpart and another set of draft and official cohort default 

7 rates under subpart N of this part. 

8 (Authority: 20 U.S.C. 1082, 1085, 1094, 1099c)

9 x. Section 668.185(a)(3) is revised to read as follows:

10 §668.185 Draft cohort default rates and your ability to 

11 challenge before official cohort default rates are issued.

12 (a) * * * 

13 (3) Your draft cohort default rate and the loan record 

14 detail report are not considered public information and may not 

15 be otherwise voluntarily released to the public by a data 

16 manager.

17 * * * * *

18 x. Section 668.186 is revised to read as follows:

19 §668.186 Notice of your official cohort default rate.

20 (a) We electronically notify you of your cohort default 

21 rate after we calculate it, by sending you an eCDR notification 

22 package to the destination point you designate. After we send 

23 our notice to you, we publish a list of cohort default rates 

24 calculated under this subpart for all institutions. 
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1 (b) If you have one or more borrowers entering repayment 

2 or are subject to sanctions, or if the Department believes you 

3 will have an official cohort default rate calculated as an 

4 average rate, you will receive a loan record detail report as 

5 part of your eCDR notification package.

6 (c) You have five business days, from the transmission 

7 date for eCDR notification packages as posted on the 

8 Department's Website, to report any problem with receipt of the 

9 electronic transmission of your eCDR notification package.

10 (d) Except as provided in paragraph (e) of this section, 

11 timelines for submitting challenges, adjustments, and appeals

12 begin on the sixth business day following the transmission date

13 for eCDR notification packages that is posted on the 

14 Department’s Website.

15 (e) If you timely report a problem with the receipt of the 

16 electronic transmission of your eCDR notification package under 

17 paragraph (c) of this section and the Department agrees that the 

18 Department caused the problem with the transmission, the 

19 Department will extend the challenge, appeal and adjustment 

20 deadlines and timeframes to account for a retransmission of your 

21 eCDR notification package after the technical problem is 

22 resolved.

23 (Approved by the Office of Management and Budget under control 

24 number 1845–0022)
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1 (Authority: 20 U.S.C. 1082, 1085, 1094, 1099c)

2 x. Section 668.187 is revised to read as follows:

3 §668.187 Consequences of cohort default rates on your ability 

4 to participate in Title IV, HEA programs.

5 (a) End of participation. (1) Except as provided in 

6 paragraph (e) of this section, you lose your eligibility to 

7 participate in the FFEL and Direct Loan programs 30 days after 

8 you receive our notice that your most recent cohort default rate 

9 is greater than 40 percent.

10 (2) Except as provided in paragraphs (d) and (e) of this 

11 section, you lose your eligibility to participate in the FFEL, 

12 Direct Loan, and Federal Pell Grant programs 30 days after you 

13 receive our notice that your three most recent cohort default 

14 rates are each 25 percent or greater.

15 (b) Length of period of ineligibility. Your loss of 

16 eligibility under this section continues--

17 (1) For the remainder of the fiscal year in which we 

18 notify you that you are subject to a loss of eligibility; and

19 (2) For the next 2 fiscal years.

20 (c) Using a cohort default rate more than once. The use 

21 of a cohort default rate as a basis for a loss of eligibility 

22 under this section does not preclude its use as a basis for--

23 (1) Any concurrent or subsequent loss of eligibility under 

24 this section; or
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1 (2) Any other action by us.

2 (d) Continuing participation in Pell. If you are subject 

3 to a loss of eligibility under paragraph (a)(2) of this section, 

4 based on three cohort default rates of 25 percent or greater, 

5 you may continue to participate in the Federal Pell Grant 

6 Program if we determine that you--

7 (1) Were ineligible to participate in the FFEL and Direct 

8 Loan programs before October 7, 1998, and your eligibility was 

9 not reinstated;

10 (2) Requested in writing, before October 7, 1998, to 

11 withdraw your participation in the FFEL and Direct Loan 

12 programs, and you were not later reinstated; or

13 (3) Have not certified an FFELP loan or originated a 

14 Direct Loan Program loan on or after July 7, 1998.

15 (e) Requests for adjustments and appeals. (1) A loss of 

16 eligibility under this section does not take effect while your 

17 request for adjustment or appeal, as listed in §668.189(a), is 

18 pending, provided your request for adjustment or appeal is 

19 complete, timely, accurate, and in the required format.

20 (2) Eligibility continued under paragraph (g)(1) of this 

21 section ends if we determine that none of the requests for 

22 adjustments and appeals you have submitted qualify you for 

23 continued eligibility under §668.189. Loss of eligibility takes 
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1 effect on the date that you receive notice of our determination 

2 on your last pending request for adjustment or appeal.

3 (3) You do not lose eligibility under this section if we 

4 determine that your request for adjustment or appeal meets all 

5 requirements of this subpart and qualifies you for continued 

6 eligibility under §668.189.

7 (4) To avoid liabilities you might otherwise incur under 

8 paragraph (g) of this section, you may choose to suspend your 

9 participation in the FFEL and Direct Loan programs during the 

10 adjustment or appeal process.

11 (f) Liabilities during the adjustment or appeal process.

12 If you continued to participate in the FFEL or Direct Loan 

13 Program under paragraph (d)(1) of this section, and we determine 

14 that none of your requests for adjustments or appeals qualify 

15 you for continued eligibility—

16 (1) For any FFEL or Direct Loan Program loan that you 

17 certified and delivered or originated and disbursed more than 30 

18 days after you received the notice of your cohort default rate, 

19 we estimate the amount of interest, special allowance, 

20 reinsurance, and any related or similar payments we make or are 

21 obligated to make on those loans;

22 (2) We exclude from this estimate any amount attributable 

23 to funds that you delivered or disbursed more than 45 days after 

24 you submitted your completed appeal to us;
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1 (3) We notify you of the estimated amount; and

2 (4) Within 45 days after you receive our notice of the 

3 estimated amount, you must pay us that amount, unless—

4 (i) You file an appeal under the procedures established in 

5 subpart H of this part (for the purposes of subpart H of this 

6 part, our notice of the estimate is considered to be a final 

7 program review determination); or

8 (ii) We permit a longer repayment period.

9 (g) Regaining eligibility. If you lose your eligibility 

10 to participate in a program under this section, you may not 

11 participate in that program until—

12 (1) The period described in paragraph (b) of this section 

13 has ended;

14 (2) You pay any amount owed to us under this section or 

15 are meeting that obligation under an agreement acceptable to us;

16 (3) You submit a new application for participation in the 

17 program;

18 (4) We determine that you meet all of the participation 

19 requirements in effect at the time of your application; and

20 (5) You and we enter into a new program participation 

21 agreement.

22 (Approved by the Office of Management and Budget under control 

23 number 1845–0022)

24 (Authority: 20 U.S.C. 1082, 1085, 1094, 1099c)
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1 x. In §668.188, the introductory text in paragraph (a) is 

2 revised to read as follows:

3 §668.188 Preventing evasion of the consequences of cohort 

4 default rates.

5 (a) General. You are subject to a loss of eligibility 

6 that has already been imposed against another institution as a 

7 result of cohort default rates if--

8 * * * * * 

9 x. Section 668.190 is revised to read as follows:

10 §668.190 Uncorrected data adjustments.

11 (a) Eligibility. You may request an uncorrected data 

12 adjustment for your most recent cohort of borrowers, used to 

13 calculate your most recent official cohort default rate, if in 

14 response to your challenge under §668.185(b), a data manager 

15 agreed correctly to change the data, but the changes are not 

16 reflected in your official cohort default rate.

17 (b) Deadlines for requesting an uncorrected data 

18 adjustment. You must send us a request for an uncorrected data 

19 adjustment, including all supporting documentation, within 30 

20 days after you receive your loan record detail report from us.

21 (c) Determination. We recalculate your cohort default 

22 rate, based on the corrected data, and electronically correct 

23 the rate that is publicly released, if we determine that—
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1 (1) In response to your challenge under §668.185(b), a 

2 data manager agreed to change the data;

3 (2) The changes described in paragraph (c)(1) of this 

4 section are not reflected in your official cohort default rate; 

5 and

6 (3) We agree that the data are incorrect.

7 (Approved by the Office of Management and Budget under control 

8 number 1845–0022)

9 (Authority: 20 U.S.C. 1082, 1085, 1094, 1099c)

10 x. Section 668.191 is revised to read as follows:

11 §668.191 New data adjustments.

12 (a) Eligibility. You may request a new data adjustment 

13 for your most recent cohort of borrowers, used to calculate your 

14 most recent official cohort default rate, if—

15 (1) A comparison of the loan record detail reports that we 

16 provide to you for the draft and official cohort default rates 

17 shows that the data have been newly included, excluded, or 

18 otherwise changed; and

19 (2) You identify errors in the data described in paragraph 

20 (a)(1) of this section that are confirmed by the data manager.

21 (b) Deadlines for requesting a new data adjustment.

22 (1) You must send to the relevant data manager, or data 

23 managers, and us a request for a new data adjustment, including 
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1 all supporting documentation, within 15 days after you receive 

2 your loan record detail report from us.

3 (2) Within 20 days after receiving your request for a new 

4 data adjustment, the data manager must send you and us a 

5 response that--

6 (i) Addresses each of your allegations of error; and

7 (ii) Includes the documentation used to support the data 

8 manager's position.

9 (3) Within 15 days after receiving a guaranty agency's 

10 notice that we hold an FFELP loan about which you are inquiring, 

11 you must send us your request for a new data adjustment for that 

12 loan. We respond to your request as set forth under paragraph 

13 (b)(3) of this section.

14 (4) Within 15 days after receiving incomplete or illegible 

15 records or data from a data manager, you must send a request for 

16 replacement records or clarification of data to the data manager 

17 and us.

18 (5) Within 20 days after receiving your request for 

19 replacement records or clarification of data, the data manager 

20 must--

21 (i) Replace the missing or illegible records;

22 (ii) Provide clarifying information; or

23 (iii) Notify you and us that no clarifying information or 

24 additional or improved records are available.
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1 (6) You must send us your completed request for a new data 

2 adjustment, including all supporting documentation--

3 (i) Within 30 days after you receive the final data 

4 manager's response to your request or requests; or

5 (ii) If you are also filing an erroneous data appeal or a 

6 loan servicing appeal, by the latest of the filing dates 

7 required in paragraph (b)(7)(i) of this section or in 

8 §668.192(b)(6)(i) or §668.193(c)(10)(i).

9 (c) Determination. If we determine that incorrect data 

10 were used to calculate your cohort default rate, we recalculate 

11 your cohort default rate based on the correct data and 

12 electronically correct the rate that is publicly released.

13 (Approved by the Office of Management and Budget under control 

14 number 1845–0022)

15 (Authority: 20 U.S.C. 1082, 1085, 1094, 1099c)

16 x. Section 668.192(c) is revised to read as follows:

17 §668.192 Erroneous data appeals.

18 * * * * *

19 (c) Determination. If we determine that incorrect data 

20 were used to calculate your cohort default rate, we recalculate 

21 your cohort default rate based on the correct data and 

22 electronically correct the rate that is publicly released.

23 * * * * *

24 x. Section 668.198 is removed.
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1 x. Amend part 668, subpart M, by:

2 A. Removing appendix A.

3 B. Redesignating appendix B as appendix A.

4 x. Add new subpart N to part 668 to read as follows:

5 Subpart N --Cohort Default Rates

6 Sec.

7 668.200 Purpose of this subpart.

8 668.201 Definitions of terms used in this subpart.

9 668.202 Calculating and applying cohort default rates.

10 668.203 Determining cohort default rates for institutions that 

11 have undergone a change in status.

12 668.204 Draft cohort default rates and your ability to 

13 challenge before official cohort default rates are issued.

14 668.205 Notice of your official cohort default rate.

15 668.206 Consequences of cohort default rates on your ability to 

16 participate in Title IV, HEA programs.

17 668.207 Preventing evasion of the consequences of cohort 

18 default rates.

19 668.208 General requirements for adjusting official cohort 

20 default rates and for appealing their consequences.

21 668.209 Uncorrected data adjustments.

22 668.210 New data adjustments.

23 668.211 Erroneous data appeals.

24 668.212 Loan servicing appeals.

25 668.213 Economically disadvantaged appeals.

26 668.214 Participation rate index appeals.

27 668.215 Average rates appeals.

28 668.216 Thirty-or-fewer borrowers appeals.

29 668.217 Default prevention plans.

30 Appendix A to Subpart N of Part 668--Sample Default Prevention 

31 Plan 

32

33 Subpart N --Cohort Default Rates

34 §668.200 Purpose of this subpart.

35 (a) General. Your cohort default rate is a measure we use 

36 to determine your eligibility to participate in various Title 

37 IV, HEA programs. We may also use it for determining your 
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1 eligibility for exemptions, such as those for certain 

2 disbursement requirements under the FFEL and Direct Loan 

3 Programs. This subpart applies solely to cohorts, as defined in 

4 §§668.201(a) and 668.202(b), for fiscal years 2009 and later.

5 For these cohorts, this subpart describes how cohort default 

6 rates are calculated, some of the consequences of cohort default 

7 rates, and how you may request changes to your cohort default 

8 rates or appeal their consequences. Under this subpart, you 

9 submit a ―challenge‖ after you receive your draft cohort default 

10 rate, and you request an ―adjustment‖ or ―appeal‖ after your 

11 official cohort default rate is published.

12 (b) Cohort Default Rates. Notwithstanding anything to the 

13 contrary in this subpart, we will issue annually two sets of 

14 draft and official cohort default rates for fiscal years 2009, 

15 2010, and 2011. For each of these years, you will receive one 

16 set of draft and official cohort default rates under this 

17 subpart and another set of draft and official cohort default 

18 rates under subpart M of this part. 

19 (Approved by the Office of Management and Budget under control 

20 number 1845–0022) 

21 (Authority: 20 U.S.C. 1082, 1085, 1094, 1099c)

22 §668.201 Definitions of terms used in this subpart.

23 We use the following definitions in this subpart:
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1 (a) Cohort. Your cohort is a group of borrowers used to 

2 determine your cohort default rate. The method for identifying 

3 the borrowers in a cohort is provided in §668.202(b).

4 (b) Data manager. (1) For FFELP loans held by a guaranty 

5 agency or lender, the guaranty agency is the data manager.

6 (2) For FFELP loans that we hold, we are the data manager.

7 (3) For Direct Loan Program loans, the Direct Loan 

8 Servicer, as defined in 34 CFR 685.102, is the data manager.

9 (c) Days. In this subpart, ―days‖ means calendar days.

10 (d) Default. A borrower is considered to be in default 

11 for cohort default rate purposes under the rules in §668.202(c).

12 (e) Draft cohort default rate. Your draft cohort default 

13 rate is a rate we issue, for your review, before we issue your 

14 official cohort default rate. A draft cohort default rate is 

15 used only for the purposes described in §668.204.

16 (f) Entering repayment. (1) Except as provided in 

17 paragraphs (f)(2) and (f)(3) of this section, loans are 

18 considered to enter repayment on the dates described in 34 CFR 

19 682.200 (under the definition of ―repayment period‖) and in 34 

20 CFR 685.207.

21 (2) A Federal SLS loan is considered to enter repayment--

22 (i) At the same time the borrower's Federal Stafford loan 

23 enters repayment, if the borrower received the Federal SLS loan 
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1 and the Federal Stafford loan during the same period of 

2 continuous enrollment; or

3 (ii) In all other cases, on the day after the student 

4 ceases to be enrolled at an institution on at least a half-time 

5 basis in an educational program leading to a degree, 

6 certificate, or other recognized educational credential.

7 (3) For the purposes of this subpart, a loan is considered 

8 to enter repayment on the date that a borrower repays it in 

9 full, if the loan is paid in full before the loan enters 

10 repayment under paragraphs (f)(1) or (f)(2) of this section.

11 (g) Fiscal year. A fiscal year begins on October 1 and 

12 ends on the following September 30. A fiscal year is identified 

13 by the calendar year in which it ends.

14 (h) Loan record detail report. The loan record detail 

15 report is a report that we produce. It contains the data used to 

16 calculate your draft or official cohort default rate.

17 (i) Official cohort default rate. Your official cohort 

18 default rate is the cohort default rate that we publish for you 

19 under §668.205. Cohort default rates calculated under this 

20 subpart are not related in any way to cohort default rates that 

21 are calculated for the Federal Perkins Loan Program.

22 (j) We. We are the Department, the Secretary, or the 

23 Secretary's designee.

24 (k) You. You are an institution.
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1 (Approved by the Office of Management and Budget under control 

2 number 1845–0022) 

3 (Authority: 20 U.S.C. 1082, 1085, 1094, 1099c)

4 §668.202 Calculating and applying cohort default rates.

5 (a) General. This section describes the four steps that 

6 we follow to calculate and apply your cohort default rate for a 

7 fiscal year:

8 (1) First, under paragraph (b) of this section, we 

9 identify the borrowers in your cohort for the fiscal year. If 

10 the total number of borrowers in that cohort is fewer than 30, 

11 we also identify the borrowers in your cohorts for the 2 most 

12 recent prior fiscal years.

13 (2) Second, under paragraph (c) of this section, we 

14 identify the borrowers in the cohort (or cohorts) who are 

15 considered to be in default by the end of the second fiscal year 

16 following the fiscal year those borrowers entered repayment. If 

17 more than one cohort will be used to calculate your cohort 

18 default rate, we identify defaulted borrowers separately for 

19 each cohort. 

20 (3) Third, under paragraph (d) of this section, we 

21 calculate your cohort default rate.

22 (4) Fourth, we apply your cohort default rate to all of 

23 your locations--
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1 (i) As you exist on the date you receive the notice of 

2 your official cohort default rate; and

3 (ii) From the date on which you receive the notice of your 

4 official cohort default rate until you receive our notice that 

5 the cohort default rate no longer applies.

6 (b) Identify the borrowers in a cohort. (1) Except as 

7 provided in paragraph (b)(3) of this section, your cohort for a 

8 fiscal year consists of all of your current and former students 

9 who, during that fiscal year, entered repayment on any Federal 

10 Stafford loan, Federal SLS loan, Direct Subsidized loan, or 

11 Direct Unsubsidized loan that they received to attend your 

12 institution, or on the portion of a loan made under the Federal 

13 Consolidation Loan Program or the Federal Direct Consolidation 

14 Loan Program (as defined in 34 CFR 685.102) that is used to 

15 repay those loans.

16 (2) A borrower may be included in more than one of your 

17 cohorts and may be included in the cohorts of more than one 

18 institution in the same fiscal year.

19 (3) A TEACH Grant that has been converted to a Federal 

20 Direct Unsubsidized Loan is not considered for the purpose of 

21 calculating and applying cohort default rates.

22 (c) Identify the borrowers in a cohort who are in default.

23 (1) Except as provided in paragraph (c)(2) of this section, a 

24 borrower in a cohort for a fiscal year is considered to be in 
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1 default if, before the end of the second fiscal year following 

2 the fiscal year the borrower entered repayment--

3 (i) The borrower defaults on any FFELP loan that was used 

4 to include the borrower in the cohort or on any Federal

5 Consolidation Loan Program loan that repaid a loan that was used 

6 to include the borrower in the cohort (however, a borrower is 

7 not considered to be in default unless a claim for insurance has 

8 been paid on the loan by a guaranty agency or by us);

9 (ii) The borrower fails to make an installment payment, 

10 when due, on any Direct Loan Program loan that was used to 

11 include the borrower in the cohort or on any Federal Direct 

12 Consolidation Loan Program loan that repaid a loan that was used 

13 to include the borrower in the cohort, and the borrower's 

14 failure persists for 360 days (or for 270 days, if the 

15 borrower's first day of delinquency was before October 7, 1998); 

16 or

17 (iii) You or your owner, agent, contractor, employee, or 

18 any other affiliated entity or individual make a payment to 

19 prevent a borrower's default on a loan that is used to include 

20 the borrower in that cohort.

21 (2) A borrower is not considered to be in default based on 

22 a loan that is, before the end of the second fiscal year 

23 following the fiscal year in which it entered repayment--
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1 (i) Rehabilitated under 34 CFR 682.405 or 34 CFR 

2 685.211(e); or

3 (ii) Repurchased by a lender because the claim for 

4 insurance was submitted or paid in error.

5 (d) Calculate the cohort default rate. Except as provided 

6 in §668.203, if there are--

7 (1)(i) Thirty or more borrowers in your cohort for a 

8 fiscal year, your cohort default rate is the percentage that is

9 calculated by--

10 (ii) Dividing the number of borrowers in the cohort who 

11 are in default, as determined under paragraph (c) of this 

12 section by the number of borrowers in the cohort, as determined 

13 under paragraph (b) of this section.

14 (2)(i) Fewer than 30 borrowers in your cohort for a fiscal 

15 year, your cohort default rate is the percentage that is 

16 calculated by--

17 (ii) Dividing the total number of borrowers in that cohort 

18 and in the two most recent prior cohorts who are in default, as 

19 determined for each cohort under paragraph (c) of this section 

20 by the total number of borrowers in that cohort and the two most 

21 recent prior cohorts, as determined for each cohort under 

22 paragraph (b) of this section.

23 (Approved by the Office of Management and Budget under control 

24 number 1845–0022) 
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1 (Authority: 20 U.S.C. 1070g, 1082, 1085, 1094, 1099c)

2 §668.203 Determining cohort default rates for institutions that 

3 have undergone a change in status.

4 (a) General. (1) If you undergo a change in status 

5 identified in this section, your cohort default rate is 

6 determined under this section.

7 (2) In determining cohort default rates under this 

8 section, the date of a merger, acquisition, or other change in 

9 status is the date the change occurs.

10 (3) A change in status may affect your eligibility to 

11 participate in Title IV, HEA programs under §668.206 or 

12 §668.207.

13 (4) If another institution's cohort default rate is 

14 applicable to you under this section, you may challenge, request 

15 an adjustment, or submit an appeal for the cohort default rate 

16 under the same requirements that would be applicable to the 

17 other institution under §§668.204 and 668.208.

18 (b) Acquisition or merger of institutions. If your 

19 institution acquires, or was created by the merger of, one or 

20 more institutions that participated independently in the Title 

21 IV, HEA programs immediately before the acquisition or merger--

22 (1) For the cohort default rates published before the date 

23 of the acquisition or merger, your cohort default rates are the 

24 same as those of your predecessor that had the highest total 
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1 number of borrowers entering repayment in the two most recent 

2 cohorts used to calculate those cohort default rates; and

3 (2) Beginning with the first cohort default rate published 

4 after the date of the acquisition or merger, your cohort default 

5 rates are determined by including the applicable borrowers from 

6 each institution involved in the acquisition or merger in the 

7 calculation under §668.202.

8 (c) Acquisition of branches or locations. If you acquire 

9 a branch or a location from another institution participating in 

10 the Title IV, HEA programs--

11 (1) The cohort default rates published for you before the 

12 date of the change apply to you and to the newly acquired branch 

13 or location;

14 (2) Beginning with the first cohort default rate published 

15 after the date of the change, your cohort default rates for the 

16 next 3 fiscal years are determined by including the applicable 

17 borrowers from your institution and the other institution 

18 (including all of its locations) in the calculation under 

19 §668.202;

20 (3) After the period described in paragraph (c)(2) of this 

21 section, your cohort default rates do not include borrowers from 

22 the other institution in the calculation under §668.202; and
24

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1 (4) At all times, the cohort default rate for the 

2 institution from which you acquired the branch or location is 

3 not affected by this change in status.

4 (d) Branches or locations becoming institutions. If you 

5 are a branch or location of an institution that is participating 

6 in the Title IV, HEA programs, and you become a separate, new 

7 institution for the purposes of participating in those programs—

8 (1) The cohort default rates published before the date of 

9 the change for your former parent institution are also 

10 applicable to you;

11 (2) Beginning with the first cohort default rate published 

12 after the date of the change, your cohort default rates for the 

13 next 3 fiscal years are determined by including the applicable 

14 borrowers from your institution and your former parent 

15 institution (including all of its locations) in the calculation 

16 under §668.202; and

17 (3) After the period described in paragraph (d)(2) of this 

18 section, your cohort default rates do not include borrowers from 

19 your former parent institution in the calculation under 

20 §668.202.

21 (Approved by the Office of Management and Budget under control 

22 number 1845–0022) 

23 (Authority: 20 U.S.C. 1082, 1085, 1094, 1099c)
25

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1 §668.204 Draft cohort default rates and your ability to 

2 challenge before official cohort default rates are issued.

3 (a) General. (1) We notify you of your draft cohort 

4 default rate before your official cohort default rate is 

5 calculated. Our notice includes the loan record detail report 

6 for the draft cohort default rate.

7 (2) Regardless of the number of borrowers included in your 

8 cohort, your draft cohort default rate is always calculated 

9 using data for that fiscal year alone, using the method 

10 described in §668.202(d)(1).

11 (3) Your draft cohort default rate and the loan record 

12 detail report are not considered public information and may not 

13 be otherwise voluntarily released to the public by a data 

14 manager.

15 (4) Any challenge you submit under this section and any 

16 response provided by a data manager must be in a format 

17 acceptable to us. This acceptable format is described in the 

18 ―Cohort Default Rate Guide‖ that we provide to you. If your 

19 challenge does not comply with the requirements in the ―Cohort 

20 Default Rate Guide,‖ we may deny your challenge.

21 (b) Incorrect data challenges. (1) You may challenge the 

22 accuracy of the data included on the loan record detail report 

23 by sending a challenge to the relevant data manager, or data 
26

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1 managers, within 45 days after you receive the data. Your 

2 challenge must include--

3 (i) A description of the information in the loan record 

4 detail report that you believe is incorrect; and

5 (ii) Documentation that supports your contention that the 

6 data are incorrect.

7 (2) Within 30 days after receiving your challenge, the 

8 data manager must send you and us a response that—

9 (i) Addresses each of your allegations of error; and

10 (ii) Includes the documentation that supports the data 

11 manager's position.

12 (3) If your data manager concludes that draft data in the 

13 loan record detail report are incorrect, and we agree, we use 

14 the corrected data to calculate your cohort default rate.

15 (4) If you fail to challenge the accuracy of data under 

16 this section, you cannot contest the accuracy of those data in 

17 an uncorrected data adjustment, under §668.209, or in an 

18 erroneous data appeal, under §668.211.

19 (c) Participation rate index challenges. (1)(i) You may 

20 challenge an anticipated loss of eligibility under 

21 §668.206(a)(1), based on one cohort default rate over 40 

22 percent, if your participation rate index for that cohort's 

23 fiscal year is equal to or less than 0.06015.
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1 (ii) You may challenge an anticipated loss of eligibility 

2 under §668.206(a)(2), based on three cohort default rates of 30

3 percent or greater, if your participation rate index is equal to 

4 or less than 0.0625 for any of those three cohorts' fiscal 

5 years.

6 (iii) You may challenge a potential placement on 

7 provisional certification under §668.16(m)(2)(i), based on two 

8 cohort default rates that fail to satisfy the standard of 

9 administrative capability in §668.16(m)(1)(ii), if your 

10 participation rate index is equal to or less than 0.0625 for 

11 either of the two cohorts' fiscal years.

12 (2) For a participation rate index challenge, your 

13 participation rate index is calculated as described in 

14 §668.214(b), except that--

15 (i) The draft cohort default rate is considered to be your 

16 most recent cohort default rate; and

17 (ii) If the cohort used to calculate your draft cohort 

18 default rate included fewer than 30 borrowers, you may calculate 

19 your participation rate index for that fiscal year using either 

20 your most recent draft cohort default rate or the average rate 

21 that would be calculated for that fiscal year, using the method 

22 described in §668.202(d)(2).
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1 (3) You must send your participation rate index challenge, 

2 including all supporting documentation, to us within 45 days 

3 after you receive your draft cohort default rate.

4 (4) We notify you of our determination on your 

5 participation rate index challenge before your official cohort 

6 default rate is published.

7 (5) If we determine that you qualify for continued 

8 eligibility or full certification based on your participation 

9 rate index challenge, you will not lose eligibility under 

10 §668.206 or be placed on provisional certification under 

11 §668.16(m)(2)(i) when your next official cohort default rate is 

12 published. A successful challenge that is based on your draft 

13 cohort default rate does not excuse you from any other loss of 

14 eligibility or placement on provisional certification. However, 

15 if your successful challenge under paragraph (c)(1)(ii) or 

16 (c)(1)(iii) of this section is based on a prior, official cohort 

17 default rate, and not on your draft cohort default rate, we also 

18 excuse you from any subsequent loss of eligibility, under 

19 §668.206(a)(2) or placement on provisional certification, under 

20 §668.16(m)(2)(i), that would be based on that official cohort 

21 default rate.

22 (Approved by the Office of Management and Budget under control 

23 number 1845–0022) 

24 (Authority: 20 U.S.C. 1082, 1085, 1094, 1099c)
29

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1 §668.205 Notice of your official cohort default rate.

2 (a) We electronically notify you of your cohort default 

3 rate after we calculate it, by sending you an eCDR notification 

4 package to the destination point you designate. After we send 

5 our notice to you, we publish a list of cohort default rates for 

6 all institutions.

7 (b) If you had one or more borrowers entering repayment in 

8 the fiscal year for which the rate is calculated, or are subject 

9 to sanctions, or if the Department believes you will have an 

10 official cohort default rate calculated as an average rate, you 

11 will receive a loan record detail report as part of your eCDR 

12 notification package.

13 (c) You have five business days, from the transmission 

14 date for eCDR notification packages as posted on the 

15 Department's Website, to report any problem with receipt of the 

16 electronic transmission of your eCDR notification package.

17 (d) Except as provided in paragraph (e) of this section, 

18 timelines for submitting challenges, adjustments, and appeals 

19 begin on the sixth business day following the announced 

20 transmission date.

21 (e) If you timely report a problem with transmission of 

22 your eCDR notification package under paragraph (c) of this 

23 section and the Department agrees that the Department caused the 

24 problem with the transmission, the Department will extend the 
30

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1 challenge, appeal and adjustment deadlines and timeframes to 

2 account for a retransmission of your eCDR notification package 

3 after the technical problem is resolved.

4 (Approved by the Office of Management and Budget under control 

5 number 1845–0022) 

6 (Authority: 20 U.S.C. 1082, 1085, 1094, 1099c)

7 §668.206 Consequences of cohort default rates on your ability to 

8 participate in Title IV, HEA programs.

9 (a) End of participation. (1) Except as provided in 

10 paragraph (e) of this section, you lose your eligibility to 

11 participate in the FFEL and Direct Loan programs 30 days after 

12 you receive our notice that your most recent cohort default rate 

13 is greater than 40 percent.

14 (2) Except as provided in paragraphs (d) and (e) of this 

15 section, you lose your eligibility to participate in the FFEL, 

16 Direct Loan, and Federal Pell Grant programs 30 days after you 

17 receive our notice that your three most recent cohort default 

18 rates are each 30 percent or greater.

19 (b) Length of period of ineligibility. Your loss of 

20 eligibility under this section continues--

21 (1) For the remainder of the fiscal year in which we 

22 notify you that you are subject to a loss of eligibility; and

23 (2) For the next 2 fiscal years.
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1 (c) Using a cohort default rate more than once. The use 

2 of a cohort default rate as a basis for a loss of eligibility 

3 under this section does not preclude its use as a basis for--

4 (1) Any concurrent or subsequent loss of eligibility under 

5 this section; or

6 (2) Any other action by us.

7 (d) Continuing participation in Pell. If you are subject 

8 to a loss of eligibility under paragraph (a)(2) of this section, 

9 based on three cohort default rates of 30 percent or greater, 

10 you may continue to participate in the Federal Pell Grant 

11 Program if we determine that you--

12 (1) Were ineligible to participate in the FFEL and Direct 

13 Loan programs before October 7, 1998, and your eligibility was 

14 not reinstated;

15 (2) Requested in writing, before October 7, 1998, to 

16 withdraw your participation in the FFEL and Direct Loan 

17 programs, and you were not later reinstated; or

18 (3) Have not certified an FFELP loan or originated a 

19 Direct Loan Program loan on or after July 7, 1998.

20 (e) Requests for adjustments and appeals. (1) A loss of 

21 eligibility under this section does not take effect while your 

22 request for adjustment or appeal, as listed in §668.208(a), is 

23 pending, provided your request for adjustment or appeal is 

24 complete, timely, accurate, and in the required format.
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1 (2) Eligibility continued under paragraph (e)(1) of this 

2 section ends if we determine that none of the requests for 

3 adjustments and appeals you have submitted qualify you for 

4 continued eligibility under §668.208. Loss of eligibility takes 

5 effect on the date that you receive notice of our determination 

6 on your last pending request for adjustment or appeal.

7 (3) You do not lose eligibility under this section if we 

8 determine that your request for adjustment or appeal meets all 

9 requirements of this subpart and qualifies you for continued 

10 eligibility under §668.208.

11 (4) To avoid liabilities you might otherwise incur under 

12 paragraph (f) of this section, you may choose to suspend your 

13 participation in the FFEL and Direct Loan programs during the 

14 adjustment or appeal process.

15 (f) Liabilities during the adjustment or appeal process.

16 If you continued to participate in the FFEL or Direct Loan 

17 Program under paragraph (e)(1) of this section, and we determine 

18 that none of your requests for adjustments or appeals qualify 

19 you for continued eligibility--

20 (1) For any FFEL or Direct Loan Program loan that you 

21 certified and delivered or originated and disbursed more than 30 

22 days after you received the notice of your cohort default rate, 

23 we estimate the amount of interest, special allowance, 
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1 reinsurance, and any related or similar payments we make or are 

2 obligated to make on those loans;

3 (2) We exclude from this estimate any amount attributable 

4 to funds that you delivered or disbursed more than 45 days after 

5 you submitted your completed appeal to us;

6 (3) We notify you of the estimated amount; and

7 (4) Within 45 days after you receive our notice of the 

8 estimated amount, you must pay us that amount, unless--

9 (i) You file an appeal under the procedures established in 

10 subpart H of this part (for the purposes of subpart H of this 

11 part, our notice of the estimate is considered to be a final 

12 program review determination); or

13 (ii) We permit a longer repayment period.

14 (g) Regaining eligibility. If you lose your eligibility 

15 to participate in a program under this section, you may not 

16 participate in that program until—

17 (1) The period described in paragraph (b) of this section 

18 has ended;

19 (2) You pay any amount owed to us under this section or 

20 are meeting that obligation under an agreement acceptable to us;

21 (3) You submit a new application for participation in the 

22 program;

23 (4) We determine that you meet all of the participation 

24 requirements in effect at the time of your application; and
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1 (5) You and we enter into a new program participation 

2 agreement.

3 (Approved by the Office of Management and Budget under control 

4 number 1845–0022) 

5 (Authority: 20 U.S.C. 1082, 1085, 1094, 1099c)

6 §668.207 Preventing evasion of the consequences of cohort 

7 default rates.

8 (a) General. You are subject to a loss of eligibility 

9 that has already been imposed against another institution as a 

10 result of cohort default rates if--

11 (1) You and the ineligible institution are both parties to 

12 a transaction that results in a change of ownership, a change in 

13 control, a merger, a consolidation, an acquisition, a change of

14 name, a change of address, any change that results in a location 

15 becoming a freestanding institution, a purchase or sale, a 

16 transfer of assets, an assignment, a change of identification 

17 number, a contract for services, an addition or closure of one 

18 or more locations or branches or educational programs, or any 

19 other change in whole or in part in institutional structure or 

20 identity;

21 (2) Following the change described in paragraph (a)(1) of 

22 this section, you offer an educational program at substantially 

23 the same address at which the ineligible institution had offered 

24 an educational program before the change; and
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1 (3) There is a commonality of ownership or management 

2 between you and the ineligible institution, as the ineligible 

3 institution existed before the change.

4 (b) Commonality of ownership or management. For the 

5 purposes of this section, a commonality of ownership or 

6 management exists if, at each institution, the same person (as 

7 defined in 34 CFR 600.31) or members of that person's family, 

8 directly or indirectly--

9 (1) Holds or held a managerial role; or

10 (2) Has or had the ability to affect substantially the 

11 institution's actions, within the meaning of 34 CFR 600.21.

12 (c) Teach-outs. Notwithstanding paragraph (b)(1) of this 

13 section, a commonality of management does not exist if you are 

14 conducting a teach-out under a teach-out agreement as defined in 

15 34 CFR 602.3 and administered in accordance with 34 CFR 

16 602.24(c), and--

17 (1)(i) Within 60 days after the change described in this 

18 section, you send us the names of the managers for each facility 

19 undergoing the teach-out as it existed before the change and for 

20 each facility as it exists after you believe that the 

21 commonality of management has ended; and

22 (ii) We determine that the commonality of management, as

23 described in paragraph (b)(1) of this section, has ended; or
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1 (2)(i) Within 30 days after you receive our notice that we 

2 have denied your submission under paragraph (c)(1)(i) of this 

3 section, you make the management changes we request and send us 

4 a list of the names of the managers for each facility undergoing 

5 the teach-out as it exists after you make those changes; and

6 (ii) We determine that the commonality of management, as 

7 described in paragraph (b)(1) of this section, has ended.

8 (d) Initial determination. We encourage you to contact us 

9 before undergoing a change described in this section. If you 

10 write to us, providing the information we request, we will 

11 provide a written initial determination of the anticipated 

12 change's effect on your eligibility.

13 (e) Notice of accountability. (1) We notify you in 

14 writing if, in response to your notice or application filed 

15 under 34 CFR 600.20 or 600.21, we determine that you are subject 

16 to a loss of eligibility, under paragraph (a) of this section, 

17 that has been imposed against another institution.

18 (2) Our notice also advises you of the scope and duration 

19 of your loss of eligibility. The loss of eligibility applies to 

20 all of your locations from the date you receive our notice until 

21 the expiration of the period of ineligibility applicable to the 

22 other institution.

23 (3) If you are subject to a loss of eligibility under this 

24 section that has already been imposed against another 
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1 institution, you may only request an adjustment or submit an 

2 appeal for the loss of eligibility under the same requirements 

3 that would be applicable to the other institution under 

4 §668.208.

5 (Approved by the Office of Management and Budget under control 

6 number 1845–0022) 

7 (Authority: 20 U.S.C. 1082, 1085, 1094, 1099c)

8 §668.208 General requirements for adjusting official cohort 

9 default rates and for appealing their consequences.

10 (a) Remaining eligible. You do not lose eligibility under 

11 §668.206 if--

12 (1) We recalculate your cohort default rate, and it is 

13 below the percentage threshold for the loss of eligibility as 

14 the result of--

15 (i) An uncorrected data adjustment submitted under this 

16 section and §668.209;

17 (ii) A new data adjustment submitted under this section 

18 and §668.210;

19 (iii) An erroneous data appeal submitted under this 

20 section and §668.211; or

21 (iv) A loan servicing appeal submitted under this section 

22 and §668.212; or

23 (2) You meet the requirements for--
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1 (i) An economically disadvantaged appeal submitted under 

2 this section and §668.213;

3 (ii) A participation rate index appeal submitted under 

4 this section and §668.214;

5 (iii) An average rates appeal submitted under this section 

6 and §668.215; or

7 (iv) A thirty-or-fewer borrowers appeal submitted under 

8 this section and §668.216.

9 (b) Limitations on your ability to dispute your cohort 

10 default rate. (1) You may not dispute the calculation of a 

11 cohort default rate except as described in this subpart or in 

12 §668.16(m)(2).

13 (2) You may not request an adjustment or appeal a cohort 

14 default rate, under §668.209, §668.210, §668.211, or §668.212, 

15 more than once.

16 (3) You may not request an adjustment or appeal a cohort 

17 default rate, under §668.209, §668.210, §668.211, or §668.212, 

18 if you previously lost your eligibility to participate in a 

19 Title IV, HEA program, under §668.206, or were placed on 

20 provisional certification under §668.16(m)(2)(i), based entirely 

21 or partially on that cohort default rate.

22 (c) Content and format of requests for adjustments and 

23 appeals. We may deny your request for adjustment or appeal if 

24 it does not meet the following requirements:
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1 (1) All appeals, notices, requests, independent auditor's 

2 opinions, management's written assertions, and other 

3 correspondence that you are required to send under this subpart 

4 must be complete, timely, accurate, and in a format acceptable 

5 to us. This acceptable format is described in the ―Cohort 

6 Default Rate Guide‖ that we provide to you.

7 (2) Your completed request for adjustment or appeal must 

8 include--

9 (i) All of the information necessary to substantiate your 

10 request for adjustment or appeal; and

11 (ii) A certification by your chief executive officer, 

12 under penalty of perjury, that all the information you provide 

13 is true and correct.

14 (d) Our copies of your correspondence. Whenever you are 

15 required by this subpart to correspond with a party other than 

16 us, you must send us a copy of your correspondence within the 

17 same time deadlines. However, you are not required to send us 

18 copies of documents that you received from us originally.

19 (e) Requirements for data managers' responses. (1) 

20 Except as otherwise provided in this subpart, if this subpart 

21 requires a data manager to correspond with any party other than 

22 us, the data manager must send us a copy of the correspondence 

23 within the same time deadlines.
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1 (2) If a data manager sends us correspondence under this 

2 subpart that is not in a format acceptable to us, we may require 

3 the data manager to revise that correspondence's format, and we 

4 may prescribe a format for that data manager's subsequent 

5 correspondence with us.

6 (f) Our decision on your request for adjustment or appeal.

7 (1) We determine whether your request for an adjustment or 

8 appeal is in compliance with this subpart.

9 (2) In making our decision for an adjustment, under 

10 §668.209 or §668.210, or an appeal, under §668.211 or §668.212--

11 (i) We presume that the information provided to you by a 

12 data manager is correct unless you provide substantial evidence 

13 that shows the information is not correct; and

14 (ii) If we determine that a data manager did not provide 

15 the necessary clarifying information or legible records in 

16 meeting the requirements of this subpart, we presume that the 

17 evidence that you provide to us is correct unless it is 

18 contradicted or otherwise proven to be incorrect by information 

19 we maintain.

20 (3) Our decision is based on the materials you submit 

21 under this subpart. We do not provide an oral hearing.

22 (4) We notify you of our decision--

23 (i) If you request an adjustment or appeal because you are 

24 subject to a loss of eligibility under §668.206 or potential 
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1 placement on provisional certification under §668.16(m)(2)(i) or 

2 file an economically disadvantaged appeal under §668.213(a)(2),

3 within 45 days after we receive your completed request for an 

4 adjustment or appeal; or

5 (ii) In all other cases, except for appeals submitted 

6 under §668.211(a) following placement on provisional 

7 certification, before we notify you of your next official cohort 

8 default rate.

9 (5) You may not seek judicial review of our determination 

10 of a cohort default rate until we issue our decision on all 

11 pending requests for adjustments or appeals for that cohort 

12 default rate.

13 (Approved by the Office of Management and Budget under control 

14 number 1845–0022) 

15 (Authority: 20 U.S.C. 1082, 1085, 1094, 1099c)

16 §668.209 Uncorrected data adjustments.

17 (a) Eligibility. You may request an uncorrected data 

18 adjustment for your most recent cohort of borrowers, used to 

19 calculate your most recent official cohort default rate, if in 

20 response to your challenge under §668.204(b), a data manager 

21 agreed correctly to change the data, but the changes are not 

22 reflected in your official cohort default rate.

23 (b) Deadlines for requesting an uncorrected data 

24 adjustment. You must send us a request for an uncorrected data 
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1 adjustment, including all supporting documentation, within 30 

2 days after you receive your loan record detail report from us.

3 (c) Determination. We recalculate your cohort default 

4 rate, based on the corrected data, and electronically correct 

5 the rate that is publicly released if we determine that--

6 (1) In response to your challenge under §668.204(b), a 

7 data manager agreed to change the data;

8 (2) The changes described in paragraph (c)(1) of this 

9 section are not reflected in your official cohort default rate; 

10 and

11 (3) We agree that the data are incorrect.

12 (Approved by the Office of Management and Budget under control 

13 number 1845–0022) 

14 (Authority: 20 U.S.C. 1082, 1085, 1094, 1099c)

15 §668.210 New data adjustments.

16 (a) Eligibility. You may request a new data adjustment 

17 for your most recent cohort of borrowers, used to calculate your 

18 most recent official cohort default rate, if--

19 (1) A comparison of the loan record detail reports that we 

20 provide to you for the draft and official cohort default rates 

21 shows that the data have been newly included, excluded, or 

22 otherwise changed; and

23 (2) You identify errors in the data described in paragraph 

24 (a)(1) of this section that are confirmed by the data manager.
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1 (b) Deadlines for requesting a new data adjustment. (1) 

2 You must send to the relevant data manager, or data managers, 

3 and us a request for a new data adjustment, including all 

4 supporting documentation, within 15 days after you receive your 

5 loan record detail report from us.

6 (2) Within 20 days after receiving your request for a new 

7 data adjustment, the data manager must send you and us a

8 response that--

9 (i) Addresses each of your allegations of error; and

10 (ii) Includes the documentation used to support the data 

11 manager's position.

12 (3) Within 15 days after receiving a guaranty agency's 

13 notice that we hold an FFELP loan about which you are inquiring, 

14 you must send us your request for a new data adjustment for that 

15 loan. We respond to your request as set forth under paragraph 

16 (b)(2) of this section.

17 (4) Within 15 days after receiving incomplete or illegible 

18 records or data from a data manager, you must send a request for 

19 replacement records or clarification of data to the data manager 

20 and us.

21 (5) Within 20 days after receiving your request for 

22 replacement records or clarification of data, the data manager 

23 must--

24 (i) Replace the missing or illegible records;
44

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1 (ii) Provide clarifying information; or

2 (iii) Notify you and us that no clarifying information or 

3 additional or improved records are available.

4 (6) You must send us your completed request for a new data 

5 adjustment, including all supporting documentation--

6 (i) Within 30 days after you receive the final data 

7 manager's response to your request or requests; or

8 (ii) If you are also filing an erroneous data appeal or a 

9 loan servicing appeal, by the latest of the filing dates 

10 required in paragraph (b)(7)(i) of this section or in 

11 §668.211(b)(6)(i) or §668.212(c)(10)(i).

12 (c) Determination. If we determine that incorrect data 

13 were used to calculate your cohort default rate, we recalculate 

14 your cohort default rate based on the correct data and make 

15 electronic corrections to the data that is publicly released.

16 (Approved by the Office of Management and Budget under control 

17 number 1845–0022) 

18 (Authority: 20 U.S.C. 1082, 1085, 1094, 1099c)

19 §668.211 Erroneous data appeals.

20 (a) Eligibility. Except as provided in §668.208(b), you 

21 may appeal the calculation of a cohort default rate upon which a 

22 loss of eligibility, under §668.206, or provisional 

23 certification, under §668.16(m), is based if--
45

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1 (1) You dispute the accuracy of data that you previously 

2 challenged on the basis of incorrect data, under §668.204(b); or

3 (2) A comparison of the loan record detail reports that we 

4 provide to you for the draft and official cohort default rates 

5 shows that the data have been newly included, excluded, or 

6 otherwise changed, and you dispute the accuracy of that data.

7 (b) Deadlines for submitting an appeal. (1) You must 

8 send a request for verification of data errors to the relevant 

9 data manager, or data managers, and to us within 15 days after 

10 you receive the notice of your loss of eligibility or 

11 provisional certification. Your request must include a 

12 description of the information in the cohort default rate data 

13 that you believe is incorrect and all supporting documentation 

14 that demonstrates the error.

15 (2) Within 20 days after receiving your request for 

16 verification of data errors, the data manager must send you and 

17 us a response that—

18 (i) Addresses each of your allegations of error; and

19 (ii) Includes the documentation used to support the data 

20 manager's position.

21 (3) Within 15 days after receiving a guaranty agency's 

22 notice that we hold an FFELP loan about which you are inquiring, 

23 you must send us your request for verification of that loan's 

24 data errors. Your request must include a description of the 
46

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1 information in the cohort default rate data that you believe is 

2 incorrect and all supporting documentation that demonstrates the 

3 error. We respond to your request as set forth under paragraph 

4 (b)(2) of this section.

5 (4) Within 15 days after receiving incomplete or illegible 

6 records or data, you must send a request for replacement records 

7 or clarification of data to the data manager and us.

8 (5) Within 20 days after receiving your request for 

9 replacement records or clarification of data, the data manager 

10 must--

11 (i) Replace the missing or illegible records;

12 (ii) Provide clarifying information; or

13 (iii) Notify you and us that no clarifying information or 

14 additional or improved records are available.

15 (6) You must send your completed appeal to us, including 

16 all supporting documentation--

17 (i) Within 30 days after you receive the final data 

18 manager's response to your request; or

19 (ii) If you are also requesting a new data adjustment or 

20 filing a loan servicing appeal, by the latest of the filing 

21 dates required in paragraph (b)(6)(i) of this section or in 

22 §668.210(b)(6)(i) or §668.212(c)(10)(i).

23 (c) Determination. If we determine that incorrect data 

24 were used to calculate your cohort default rate, we recalculate 
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1 your cohort default rate based on the correct data and 

2 electronically correct the rate that is publicly released.

3 (Approved by the Office of Management and Budget under control 

4 number 1845–0022) 

5 (Authority: 20 U.S.C. 1082, 1085, 1094, 1099c)

6 §668.212 Loan servicing appeals.

7 (a) Eligibility. Except as provided in §668.208(b), you 

8 may appeal, on the basis of improper loan servicing or 

9 collection, the calculation of—

10 (1) Your most recent cohort default rate; or

11 (2) Any cohort default rate upon which a loss of 

12 eligibility under §668.206 is based.

13 (b) Improper loan servicing. For the purposes of this 

14 section, a default is considered to have been due to improper 

15 loan servicing or collection only if the borrower did not make a 

16 payment on the loan and you prove that the FFEL Program lender 

17 or the Direct Loan Servicer, as defined in 34 CFR 685.102, 

18 failed to perform one or more of the following activities, if 

19 that activity applies to the loan:

20 (1) Send at least one letter (other than the final demand 

21 letter) urging the borrower to make payments on the loan.

22 (2) Attempt at least one phone call to the borrower.

23 (3) Send a final demand letter to the borrower.
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1 (4) For a Direct Loan Program loan only, document that 

2 skip tracing was performed if the Direct Loan Servicer 

3 determined that it did not have the borrower's current address.

4 (5) For an FFELP loan only--

5 (i) Submit a request for preclaims or default aversion 

6 assistance to the guaranty agency; and

7 (ii) Submit a certification or other documentation that 

8 skip tracing was performed to the guaranty agency.

9 (c) Deadlines for submitting an appeal. (1) If the loan 

10 record detail report was not included with your official cohort 

11 default rate notice, you must request it within 15 days after 

12 you receive the notice of your official cohort default rate.

13 (2) You must send a request for loan servicing records to 

14 the relevant data manager, or data managers, and to us within 15 

15 days after you receive your loan record detail report from us. 

16 If the data manager is a guaranty agency, your request must 

17 include a copy of the loan record detail report.

18 (3) Within 20 days after receiving your request for loan 

19 servicing records, the data manager must—

20 (i) Send you and us a list of the borrowers in your 

21 representative sample, as described in paragraph (d) of this 

22 section (the list must be in social security number order, and 

23 it must include the number of defaulted loans included in the 

24 cohort for each listed borrower);
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1 (ii) Send you and us a description of how your 

2 representative sample was chosen; and

3 (iii) Either send you copies of the loan servicing records 

4 for the borrowers in your representative sample and send us a 

5 copy of its cover letter indicating that the records were sent, 

6 or send you and us a notice of the amount of its fee for 

7 providing copies of the loan servicing records.

8 (4) The data manager may charge you a reasonable fee for 

9 providing copies of loan servicing records, but it may not 

10 charge more than $10 per borrower file. If a data manager 

11 charges a fee, it is not required to send the documents to you 

12 until it receives your payment of the fee.

13 (5) If the data manager charges a fee for providing copies 

14 of loan servicing records, you must send payment in full to the 

15 data manager within 15 days after you receive the notice of the 

16 fee.

17 (6) If the data manager charges a fee for providing copies 

18 of loan servicing records, and--

19 (i) You pay the fee in full and on time, the data manager 

20 must send you, within 20 days after it receives your payment, a 

21 copy of all loan servicing records for each loan in your 

22 representative sample (the copies are provided to you in hard 

23 copy format unless the data manager and you agree that another 
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1 format may be used), and it must send us a copy of its cover 

2 letter indicating that the records were sent; or

3 (ii) You do not pay the fee in full and on time, the data 

4 manager must notify you and us of your failure to pay the fee 

5 and that you have waived your right to challenge the calculation 

6 of your cohort default rate based on the data manager's records. 

7 We accept that determination unless you prove that it is 

8 incorrect.

9 (7) Within 15 days after receiving a guaranty agency's 

10 notice that we hold an FFELP loan about which you are inquiring, 

11 you must send us your request for the loan servicing records for 

12 that loan. We respond to your request under paragraph (c)(3) of 

13 this section.

14 (8) Within 15 days after receiving incomplete or illegible 

15 records, you must send a request for replacement records to the 

16 data manager and us.

17 (9) Within 20 days after receiving your request for 

18 replacement records, the data manager must either--

19 (i) Replace the missing or illegible records; or

20 (ii) Notify you and us that no additional or improved 

21 copies are available.

22 (10) You must send your appeal to us, including all 

23 supporting documentation--
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1 (i) Within 30 days after you receive the final data 

2 manager's response to your request for loan servicing records; 

3 or

4 (ii) If you are also requesting a new data adjustment or 

5 filing an erroneous data appeal, by the latest of the filing 

6 dates required in paragraph (c)(10)(i) of this section or in 

7 §668.210(b)(6)(i) or §668.211(b)(6)(i).

8 (d) Representative sample of records. (1) To select a 

9 representative sample of records, the data manager first 

10 identifies all of the borrowers for whom it is responsible and 

11 who had loans that were considered to be in default in the 

12 calculation of the cohort default rate you are appealing.

13 (2) From the group of borrowers identified under paragraph 

14 (d)(1) of this section, the data manager identifies a sample 

15 that is large enough to derive an estimate, acceptable at a 95 

16 percent confidence level with a plus or minus 5 percent 

17 confidence interval, for use in determining the number of 

18 borrowers who should be excluded from the calculation of the 

19 cohort default rate due to improper loan servicing or 

20 collection.

21 (e) Loan servicing records. Loan servicing records are 

22 the collection and payment history records--
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1 (1) Provided to the guaranty agency by the lender and used 

2 by the guaranty agency in determining whether to pay a claim on 

3 a defaulted loan; or

4 (2) Maintained by our Direct Loan Servicer that are used 

5 in determining your cohort default rate.

6 (f) Determination. (1) We determine the number of loans, 

7 included in your representative sample of loan servicing 

8 records, that defaulted due to improper loan servicing or 

9 collection, as described in paragraph (b) of this section.

10 (2) Based on our determination, we use a statistically 

11 valid methodology to exclude the corresponding percentage of 

12 borrowers from both the numerator and denominator of the 

13 calculation of your cohort default rate, and electronically 

14 correct the rate that is publicly released.

15 (Approved by the Office of Management and Budget under control 

16 number 1845–0022) 

17 (Authority: 20 U.S.C. 1082, 1085, 1094, 1099c)

18 §668.213 Economically disadvantaged appeals.

19 (a) General. As provided in this section you may appeal--

20 (1) A notice of a loss of eligibility under §668.206; or

21 (2) A notice of a second successive official cohort 

22 default rate calculated under this subpart that is equal to or 

23 greater than 30 percent but less than or equal to 40 percent, 

24 potentially subjecting you to provisional certification.
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1 (b) Eligibility. You may appeal under this section if an 

2 independent auditor's opinion certifies that your low income

3 rate is two-thirds or more and--

4 (1) You offer an associate, baccalaureate, graduate, or 

5 professional degree, and your completion rate is 70 percent or 

6 more; or

7 (2) You do not offer an associate, baccalaureate, 

8 graduate, or professional degree, and your placement rate is 44 

9 percent or more.

10 (c) Low income rate. (1) Your low income rate is the 

11 percentage of your students, as described in paragraph (c)(2) of 

12 this section, who--

13 (i) For an award year that overlaps the 12-month period 

14 selected under paragraph (c)(2) of this section, have an 

15 expected family contribution, as defined in 34 CFR 690.2, that 

16 is equal to or less than the largest expected family 

17 contribution that would allow a student to receive one-half of 

18 the maximum Federal Pell Grant award, regardless of the 

19 student's enrollment status or cost of attendance; or

20 (ii) For a calendar year that overlaps the 12-month period 

21 selected under paragraph (c)(2) of this section, have an 

22 adjusted gross income that, when added to the adjusted gross 

23 income of the student's parents (if the student is a dependent 

24 student) or spouse (if the student is a married independent 
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1 student), is less than the amount listed in the Department of 

2 Health and Human Services poverty guidelines for the size of the 

3 student's family unit.

4 (2) The students who are used to determine your low income 

5 rate include only students who were enrolled on at least a half6 time basis in an eligible program at your institution during any 

7 part of a 12-month period that ended during the 6 months 

8 immediately preceding the cohort's fiscal year.

9 (d) Completion rate. (1) Your completion rate is the 

10 percentage of your students, as described in paragraph (d)(2) of 

11 this section, who--

12 (i) Completed the educational programs in which they were 

13 enrolled;

14 (ii) Transferred from your institution to a higher level 

15 educational program;

16 (iii) Remained enrolled and are making satisfactory 

17 progress toward completion of their educational programs at the 

18 end of the same 12-month period used to calculate the low income 

19 rate; or

20 (iv) Entered active duty in the Armed Forces of the United 

21 States within 1 year after their last date of attendance at your 

22 institution.

23 (2) The students who are used to determine your completion 

24 rate include only regular students who were--
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1 (i) Initially enrolled on a full-time basis in an eligible 

2 program; and

3 (ii) Originally scheduled to complete their programs 

4 during the same 12-month period used to calculate the low income 

5 rate.

6 (e) Placement rate.(1) Except as provided in paragraph 

7 (e)(2) of this section, your placement rate is the percentage of 

8 your students, as described in paragraphs (e)(3) and (e)(4) of 

9 this section, who--

10 (i) Are employed, in an occupation for which you provided 

11 training, on the date following 1 year after their last date of 

12 attendance at your institution;

13 (ii) Were employed for at least 13 weeks, in an occupation 

14 for which you provided training, between the date they enrolled 

15 at your institution and the first date that is more than a year 

16 after their last date of attendance at your institution; or

17 (iii) Entered active duty in the Armed Forces of the 

18 United States within 1 year after their last date of attendance 

19 at your institution.

20 (2) For the purposes of this section, a former student is 

21 not considered to have been employed based on any employment by 

22 your institution.

23 (3) The students who are used to determine your placement 

24 rate include only former students who--
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1 (i) Were initially enrolled in an eligible program on at 

2 least a half-time basis;

3 (ii) Were originally scheduled, at the time of enrollment, 

4 to complete their educational programs during the same 12-month 

5 period used to calculate the low income rate; and

6 (iii) Remained in the program beyond the point at which a 

7 student would have received a 100 percent tuition refund from 

8 you.

9 (4) A student is not included in the calculation of your 

10 placement rate if that student, on the date that is 1 year after 

11 the student's originally scheduled completion date, remains 

12 enrolled in the same program and is making satisfactory 

13 progress.

14 (f) Scheduled to complete. In calculating a completion or 

15 placement rate under this section, the date on which a student 

16 is originally scheduled to complete a program is based on--

17 (1) For a student who is initially enrolled full-time, the 

18 amount of time specified in your enrollment contract, catalog, 

19 or other materials for completion of the program by a full-time 

20 student; or

21 (2) For a student who is initially enrolled less than 

22 full-time, the amount of time that it would take the student to 

23 complete the program if the student remained at that level of 

24 enrollment throughout the program.
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1 (g) Deadline for submitting an appeal. (1) Within 30 

2 days after you receive the notice of your loss of eligibility, 

3 you must send us your management's written assertion, as 

4 described in the Cohort Default Rate Guide.

5 (2) Within 60 days after you receive the notice of your 

6 loss of eligibility, you must send us the independent auditor's 

7 opinion described in paragraph (h) of this section.

8 (h) Independent auditor's opinion. (1) The independent 

9 auditor's opinion must state whether your management's written 

10 assertion, as you provided it to the auditor and to us, meets 

11 the requirements for an economically disadvantaged appeal and is 

12 fairly stated in all material respects.

13 (2) The engagement that forms the basis of the independent 

14 auditor's opinion must be an examination-level compliance 

15 attestation engagement performed in accordance with--

16 (i) The American Institute of Certified Public 

17 Accountant's (AICPA) Statement on Standards for Attestation 

18 Engagements, Compliance Attestation (AICPA, Professional 

19 Standards, vol. 1, AT sec. 500), as amended (these standards may 

20 be obtained by calling the AICPA's order department, at 1–888–

21 777–7077); and

22 (ii) Government Auditing Standards issued by the 

23 Comptroller General of the United States.
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1 (i) Determination. You do not lose eligibility under 

2 §668.206, and we do not provisionally certify you under

3 §668.16(m)(2)(i), if--

4 (1) Your independent auditor's opinion agrees that you

5 meet the requirements for an economically disadvantaged appeal; 

6 and

7 (2) We determine that the independent auditor's opinion 

8 and your management's written assertion—

9 (i) Meet the requirements for an economically 

10 disadvantaged appeal; and

11 (ii) Are not contradicted or otherwise proven to be 

12 incorrect by information we maintain, to an extent that would 

13 render the independent auditor's opinion unacceptable.

14 (Approved by the Office of Management and Budget under control 

15 number 1845–0022) 

16 (Authority: 20 U.S.C. 1082, 1085, 1094, 1099c)

17 §668.214 Participation rate index appeals.

18 (a) Eligibility. (1) You may appeal a notice of a loss 

19 of eligibility under §668.206(a)(1), based on one cohort default 

20 rate over 40 percent, if your participation rate index for that 

21 cohort's fiscal year is equal to or less than 0.06015.

22 (2) You may appeal a notice of a loss of eligibility under 

23 §668.206(a)(2), based on three cohort default rates of 30 

24 percent or greater, if your participation rate index is equal to 
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1 or less than 0.0625 for any of those three cohorts' fiscal 

2 years.

3 (3) You may appeal potential placement on provisional 

4 certification under §668.16(m)(2)(i) based on two cohort default 

5 rates that fail to satisfy the standard of administrative 

6 capability in §668.16(m)(1)(ii) if your participation rate index 

7 is equal to or less than 0.0625 for either of the two cohorts' 

8 fiscal years.

9 (b) Calculating your participation rate index. (1)

10 Except as provided in paragraph (b)(2) of this section, your 

11 participation rate index for a fiscal year is determined by 

12 multiplying your cohort default rate for that fiscal year by the 

13 percentage that is derived by dividing--

14 (i) The number of students who received an FFELP or a 

15 Direct Loan Program loan to attend your institution during a 

16 period of enrollment, as defined in 34 CFR 682.200 or 685.102, 

17 that overlaps any part of a 12-month period that ended during 

18 the 6 months immediately preceding the cohort's fiscal year, by

19 (ii) The number of regular students who were enrolled at 

20 your institution on at least a half-time basis during any part 

21 of the same 12-month period.

22 (2) If your cohort default rate for a fiscal year is 

23 calculated as an average rate under §668.202(d)(2), you may 

24 calculate your participation rate index for that fiscal year 
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1 using either that average rate or the cohort default rate that 

2 would be calculated for the fiscal year alone using the method 

3 described in §668.202(d)(1).

4 (c) Deadline for submitting an appeal. You must send us 

5 your appeal under this section, including all supporting 

6 documentation, within 30 days after you receive--

7 (i) Notice of your loss of eligibility; or

8 (ii) Notice of a second cohort default rate that exceeds 

9 30 percent but is less than 40 percent and that, in combination 

10 with an earlier rate, potentially subjects you to provisional 

11 certification under §668.16(m)(2)(i).

12 (d) Determination. (1) You do not lose eligibility under 

13 §668.206 and we do not place you on provisional certification, 

14 if we determine that you meet the requirements for a 

15 participation rate index appeal.

16 (2) If we determine that your participation rate index for 

17 a fiscal year is equal to or less than 0.06015 or 0.0625, under 

18 paragraph (d)(1) of this section, we also excuse you from any 

19 subsequent loss of eligibility under §668.206(a)(2) or placement 

20 on provisional certification under §668.16(m)(2)(i) that would 

21 be based on the official cohort default rate for that fiscal 

22 year.

23 (Approved by the Office of Management and Budget under control 

24 number 1845–0022) 
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1 (Authority: 20 U.S.C. 1082, 1085, 1094, 1099c)

2 §668.215 Average rates appeals.

3 (a) Eligibility. (1) You may appeal a notice of a loss 

4 of eligibility under §668.206(a)(1), based on one cohort default 

5 rate over 40 percent, if that cohort default rate is calculated 

6 as an average rate under §668.202(d)(2).

7 (2) You may appeal a notice of a loss of eligibility under 

8 §668.206(a)(2), based on three cohort default rates of 30 

9 percent or greater, if at least two of those cohort default 

10 rates--

11 (i) Are calculated as average rates under §668.202(d)(2); 

12 and

13 (ii) Would be less than 30 percent if calculated for the 

14 fiscal year alone using the method described in §668.202(d)(1).

15 (b) Deadline for submitting an appeal. (1) Before 

16 notifying you of your official cohort default rate, we make an 

17 initial determination about whether you qualify for an average 

18 rates appeal. If we determine that you qualify, we notify you of 

19 that determination at the same time that we notify you of your 

20 official cohort default rate.

21 (2) If you disagree with our initial determination, you 

22 must send us your average rates appeal, including all supporting 

23 documentation, within 30 days after you receive the notice of 

24 your loss of eligibility.
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1 (c) Determination. You do not lose eligibility under 

2 §668.206 if we determine that you meet the requirements for an 

3 average rates appeal.

4 (Approved by the Office of Management and Budget under control 

5 number 1845–0022) 

6 (Authority: 20 U.S.C. 1082, 1085, 1094, 1099c)

7 §668.216 Thirty-or-fewer borrowers appeals.

8 (a) Eligibility. You may appeal a notice of a loss of 

9 eligibility under §668.206 if 30 or fewer borrowers, in total, 

10 are included in the 3 most recent cohorts of borrowers used to 

11 calculate your cohort default rates.

12 (b) Deadline for submitting an appeal. (1) Before 

13 notifying you of your official cohort default rate, we make an 

14 initial determination about whether you qualify for a thirty-or15 fewer borrowers appeal. If we determine that you qualify, we 

16 notify you of that determination at the same time that we notify 

17 you of your official cohort default rate.

18 (2) If you disagree with our initial determination, you 

19 must send us your thirty-or-fewer borrowers appeal, including 

20 all supporting documentation, within 30 days after you receive 

21 the notice of your loss of eligibility.

22 (c) Determination. You do not lose eligibility under 

23 §668.206 if we determine that you meet the requirements for a 

24 thirty-or-fewer borrowers appeal.
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1 (Approved by the Office of Management and Budget under control 

2 number 1845–0022) 

3 (Authority: 20 U.S.C. 1082, 1085, 1094, 1099c)

4 §668.217 Default prevention plans.

5 (a) First year. (1) If your cohort default rate is equal 

6 to or greater than 30 percent you must establish a default 

7 prevention task force that prepares a plan to--

8 (i) Identify the factors causing your cohort default rate 

9 to exceed the threshold;

10 (ii) Establish measurable objectives and the steps you 

11 will take to improve your cohort default rate; 

12 (iii) Specify the actions you will take to improve student 

13 loan repayment, including counseling students on repayment 

14 options; and

15 (iv) Submit your default prevention plan to us. 

16 (2) We will review your default prevention plan and offer 

17 technical assistance intended to improve student loan repayment.

18 (b) Second year. (1) If your cohort default rate is 

19 equal to or greater than 30 percent for two consecutive fiscal 

20 years, you must revise your default prevention plan and submit 

21 it to us for review.

22 (b) We may require you to revise your default prevention 

23 plan or specify actions you need to take to improve student loan 

24 repayment.
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1 (Authority: 20 U.S.C. 1082, 1085, 1094, 1099c)

2 Appendix A to Subpart N of Part 668--Sample Default Prevention 

3 Plan

4 This appendix is provided as a sample plan for those 

5 institutions developing a default prevention plan in accordance 

6 with §668.199(a)(1). It describes some measures you may find 

7 helpful in reducing the number of students that default on 

8 federally funded loans. These are not the only measures you 

9 could implement when developing a default prevention plan.

10 I. Core Default Reduction Strategies

11 1. Establish your default prevention team by engaging your 

12 chief executive officer and relevant senior executive officials 

13 and enlisting the support of representatives from offices other 

14 than the financial aid office. Consider including individuals 

15 and organizations independent of your institution that have 

16 experience in preventing title IV loan defaults.

17 2. Consider your history, resources, dollars in default, 

18 and targets for default reduction to determine which activities 

19 will result in the most benefit to you and your students.

20 3. Define evaluation methods and establish a data 

21 collection system for measuring and verifying relevant default 

22 prevention statistics, including a statistical analysis of the 

23 borrowers who default on their loans.
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1 4. Identify and allocate the personnel, administrative, 

2 and financial resources appropriate to implement the default 

3 prevention plan.

4 5. Establish annual targets for reductions in your rate.

5 6. Establish a process to ensure the accuracy of your 

6 rate.

7 II. Additional Default Reduction Strategies

8 1. Enhance the borrower's understanding of his or her loan 

9 repayment responsibilities through counseling and debt 

10 management activities.

11 2. Enhance the enrollment retention and academic

12 persistence of borrowers through counseling and academic 

13 assistance.

14 3. Maintain contact with the borrower after he or she 

15 leaves your institution by using activities such as skip tracing 

16 to locate the borrower.

17 4. Track the borrower's delinquency status by obtaining 

18 reports from data managers and FFEL Program lenders.

19 5. Enhance student loan repayments through counseling the 

20 borrower on loan repayment options and facilitating contact 

21 between the borrower and the data manager or FFEL Program 

22 lender.
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1 6. Assist a borrower who is experiencing difficulty in 

2 finding employment through career counseling, job placement 

3 assistance, and facilitating unemployment deferments.

4 7. Identify and implement alternative financial aid award 

5 policies and develop alternative financial resources that will 

6 reduce the need for student borrowing in the first 2 years of 

7 academic study.

8 III. Statistics for Measuring Progress

9 1. The number of students enrolled at your institution 

10 during each fiscal year.

11 2. The average amount borrowed by a student each fiscal 

12 year.

13 3. The number of borrowers scheduled to enter repayment 

14 each fiscal year.

15 4. The number of enrolled borrowers who received default 

16 prevention counseling services each fiscal year.

17 5. The average number of contacts that you or your agent 

18 had with a borrower who was in deferment or forbearance or in 

19 repayment status during each fiscal year.

20 6. The number of borrowers at least 60 days delinquent 

21 each fiscal year.

22 7. The number of borrowers who defaulted in each fiscal 

23 year.
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1 8. The type, frequency, and results of activities 

2 performed in accordance with the default prevention plan.