Rates for the 2004 through 2008 cohorts. Explanations of the rates are below.
Cohort Default Rate
A cohort default rate is the percentage of a borrowers who enter repayment on certain Federal Family Education Loan (FFEL) Program or William D. Ford Federal Direct Loan (Direct Loan) Program loans during a particular federal fiscal year (FY), October 1 to September 30, and default or meet other specified conditions prior to the end of the next fiscal year. The U.S Department of Education releases official cohort default rates once per year.
Budget Lifetime Default Rate
The budget lifetime default rate is a projected percentage of the Stafford Loan dollars that are originated in the Federal Family Education Loan and Direct Loan Programs for a particular fiscal year and that may default during a projected 20 year life of the loan period. This rate is reflected in the President’s Budget.
Cumulative Lifetime Default Rate
A cumulative lifetime default rate is a percentage of loans that enter repayment in the Federal Family Education Loan and Direct Loan Programs during a particular federal fiscal year and have defaulted through the end of the most recent fiscal year. Unlike the cohort default rate, which is used as an administrative tool for colleges and currently reflects a two-year indicator period, the cumulative lifetime default rate is a performance tool focused on the risk of default throughout the life of the loan. This rate will be updated and published annually.