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From: 

Sent: 

To: 

Cc: 

Subject: 

Chipb oc~ 

Tuesday, November 19, 2013 7:21 PM 

Wilson, Amy 

Kolotos, John 

Fwd: pCDR and repayment rate proposals 

We seek conforming language for pCDRs that applies Subpart N with a modification of the fiscal 

year cohorts that can be included (currently up to three years for institutional CDRs) to include 

only two fiscal years. 

Additions ln red . 

§668 . 407 Cal culating pCDR . 

<!--[if !supportLists]-->(a) <!--[endif]--> Gener al . Fo r each 

f iscal year, t he Secretar y determines t he pCDR o f a GE 

p r ogr am uslng the same me t hodol ogy the Secretar y uses to 

cal culate t he i nstituti onal coh ort def aul t rate (CDR) under 

subpart N of t his part . 

(b) Re f e r ences i n subp a rt N. In appl yi ng t he 

p r ocedures and standar ds in subpart N t o calcul a t e pCDR, 

t he Secretar y consider s each r eference to the "instituti on" 

t o appl y separ a t e l y t o t he i nstituti on wi t h r espect to each 

of t he GE p r ogr ams a t the i nsti tution , and consi ders each 

p r ovl s l on t hat descr ibes an acti on , det ermi nati on , or 

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consequence that applies to “you” as stating an action, 

determination, or consequence to apply to the institution 

separately with respect to each of the GE programs at the 

institution.

(c) Rates not calculated. For each fiscal year, the 

Secretary does not calculate the pCDR of a GE program if 

the number of borrowers in that cohort is less than 30. If 

the number of borrowers is fewer than 30, the Secretary 

will also identify borrowers in the prior fiscal year.

§668.409 Determining loan portfolio repayment performance.

(a) General. For each award year, the Secretary 

determines whether the loan portfolio of a GE program is 

negatively amortized by--

(1) Determining the outstanding principal balance of 

the portfolio at the beginning of the most recently 

completed award year. The beginning outstanding principal 

balance includes any unpaid interest that has been 

capitalized;

(2) Determining the outstanding principal balance of 

the GE program’s loan portfolio at the end of the most 

recently completed award year; and
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(3) Comparing the beginning and ending outstanding 

principal balances of the GE program’s loan portfolio. If 

the ending outstanding principal balance is greater than 

the beginning outstanding principal balance, the portfolio 

is negatively amortized. 

(b) Loan portfolio. For the purposes of this 

section, the loan portfolio of a GE program is comprised of 

the FFEL and Direct Loans for students who were enrolled in 

the GE program and who entered repayment on those loans 

during the two-year period.

(c) Exclusions. The Secretary excludes a student 

from the loan portfolio repayment performance calculations 

if the Secretary determines that-- 

(1) One or more of the student’s FFEL loans or Direct 

Loans were in a military-related deferment status for at 

least 60 consecutive days during the calendar year for 

which the Secretary obtains earnings information under 

paragraph (c) of this section; 

(2) One or more of the student’s FFEL loans or Direct 

Loans are under consideration by the Secretary, or have 

been approved, for a discharge on the basis of the 

student’s total and permanent disability, under 34 CFR 

682.402 and 685.212;
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(3) The student was enrolled on at least a half-time 

basis for at least 60 consecutive days in an eligible 

institution during the calendar year for which the 

Secretary obtains earnings information under paragraph (c) 

of this section; 

(4) The student completed a higher credentialed GE 

program at the institution subsequent to completing the 

program; or

(5) The student died. 

(d) Rates not calculated. The Secretary does not 

calculate loan portfolio repayment performance of a GE 

program if fewer than 30 borrowers were included in the 

loan portfolio.