OFFICIAL Cohort Default Rates for Schools
Definitions

Definition of Loss Due To Three Years of 25 Percent or Greater

A school subject to loss of eligibility to participate in the Federal Family Education Loan (FFEL) Program, William D. Ford Federal Direct Loan (Direct Loan) Program, and/or Federal Pell Grant Program has FY 2006, FY 2005, and FY 2004 official cohort default rates that are 25.0% or greater. If a school fails to successfully appeal this sanction, it will lose eligibility to participate in the FFEL, Direct Loan, and/or Federal Pell Grant Program until September 30, 2010. There are several exceptions to these criteria and schools that meet exemption conditions are not subject to this sanction. For more information on the sanction or the exemptions, please refer to the Cohort Default Rate Guide.

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Definition of Loss Due to One Year of 40 Percent or Greater

A school is subject to loss of eligibility to participate in the Federal Family Education Loan (FFEL) Program and/or William D. Ford Federal Direct Loan (Direct Loan) Program if the school's FY 2006 official cohort default rate is greater than 40.0%. If a school fails to successfully appeal this sanction, it will lose eligibility to participate in the FFEL and/or Direct Loan Program until September 30, 2010. There are several exceptions to these criteria and schools that meet exemption conditions are not subject to this sanction. For more information on this sanction and the exemptions, please refer to the Cohort Default Rate Guide.

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