[Code of Federal Regulations]
[Title 34, Volume 3]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR668.184]

[Page 550-551]
 
                           TITLE 34--EDUCATION
 
                         DEPARTMENT OF EDUCATION
 
PART 668--STUDENT ASSISTANCE GENERAL PROVISIONS--Table of Contents
 
                     Subpart M--Cohort Default Rates
 
Sec. 668.184  Determining cohort default rates for institutions that have undergone a change in status.

    (a) General. (1) If you undergo a change in status identified in 
this section, your cohort default rate is determined under this section.
    (2) In determining cohort default rates under this section, the date 
of a merger, acquisition, or other change in status is the date the 
change occurs.
    (3) A change in status may affect your eligibility to participate in 
Title IV, HEA programs under Sec. 668.187 or Sec. 668.188.
    (4) If another institution's cohort default rate is applicable to 
you under this section, you may challenge, request an adjustment, or 
submit an appeal for the cohort default rate under the same requirements 
that would be applicable to the other institution under Secs. 668.185 
and 668.189.
    (b) Acquisition or merger of institutions. If your institution 
acquires, or was created by the merger of, one or more institutions that 
participated independently in the Title IV, HEA programs immediately 
before the acquisition or merger--
    (1) For the cohort default rates published before the date of the 
acquisition or merger, your cohort default rates are the same as those 
of your predecessor that had the highest total number of borrowers 
entering repayment in the two most recent cohorts used to calculate 
those cohort default rates; and
    (2) Beginning with the first cohort default rate published after the 
date of the acquisition or merger, your cohort default rates are 
determined by including the applicable borrowers from each institution 
involved in the acquisition or merger in the calculation under 
Sec. 668.183.
    (c) Acquisition of branches or locations. If you acquire a branch or 
a location from another institution participating in the Title IV, HEA 
programs--
    (1) The cohort default rates published for you before the date of 
the change apply to you and to the newly acquired branch or location;
    (2) Beginning with the first cohort default rate published after the 
date of the change, your cohort default rates for the next 3 fiscal 
years are determined by including the applicable borrowers from your 
institution and the other institution (including all of its locations) 
in the calculation under Sec. 668.183;
    (3) After the period described in paragraph (c)(2) of this section, 
your cohort default rates do not include borrowers from the other 
institution in the calculation under Sec. 668.183; and
    (4) At all times, the cohort default rate for the institution from 
which you acquired the branch or location is not affected by this change 
in status.
    (d) Branches or locations becoming institutions. If you are a branch 
or location of an institution that is participating in the Title IV, HEA 
programs, and you become a separate, new institution for the purposes of 
participating in those programs--
    (1) The cohort default rates published before the date of the change 
for your former parent institution are also applicable to you;
    (2) Beginning with the first cohort default rate published after the 
date of the change, your cohort default rates for the next 3 fiscal 
years are determined by including the applicable borrowers from your 
institution and your former parent institution (including all of its 
locations) in the calculation under Sec. 668.183; and
    (3) After the period described in paragraph (d)(2) of this section, 
your cohort default rates do not include borrowers

[[Page 551]]

from your former parent institution in the calculation under 
Sec. 668.183.

(Approved by the Office of Management and Budget under control number 
1845-0022)

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