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  • 1

    Decoding CDR Reports and

    Correcting Data

    Why Review Your CDR Data

    A high CDR could result in

    Adverse publicity

    Loss of Title IV eligibility

    Loss of access to private loan funds

    Extra work due to loss of benefits or added

    sanctions

    Administrative capability

    Why Review Your CDR Data

    Capturing the right data, accurate data, and

    timely data is critical for making good policy

    and accurate decisions

    Administrative capability

    Better-quality decision-making

  • 2

    Why Review Your CDR Data

    When borrowers default

    They pay more in interest and collections fees

    The government can seize wages, tax refunds,

    and Social Security and disability benefits

    Administrative capability

    Better service to students

    Better-quality decision-making

    Objectives

    Understand the Cohort Default

    Rate (CDR) cycle

    Decode the Loan Record Detail Report

    Learn how to collect, compare, and

    correct data

    Know common appeal errors to avoid

    Understanding the Cohort

    Default Rate Cycle

  • 3

    What Is a Cohort Default Rate?

    The Numerator is the

    number of Stafford loan

    borrowers from the

    denominator who default

    within a cohort period

    The Denominator is the

    number of Stafford loan

    borrowers who enter

    repayment within a

    cohort period

    = Did not default

    in 2011-2013

    = Defaulted

    in 2011

    = Defaulted

    in 2012

    = Defaulted

    in 2013

    All borrowers entered

    repayment in 2011

    What Is a Cohort Default Period?

    Borrowers who entered

    repayment between

    10/01/2010 and

    9/30/2011

    Borrowers who entered

    repayment between

    10/01/2010 and

    9/30/2011

    Borrowers who entered

    repayment between

    10/01/2010 and 9/30/2011

    and who defaulted between

    10/01/2010 and 9/30/2012

    2-year CDR Example FY2011

    Borrowers who entered

    repayment between

    10/01/2010 and 9/30/2011

    and who defaulted between

    10/01/2010 and 9/30/2013

    3-year CDR Example FY2011

    What Is a Cohort Default Rate

    Cycle?

    The Department sends draft and official cohort

    default rates to all schools that

    Are eligible to participate in any of the Title IV

    programs

    Have had a borrower in repayment in the current or

    any of the past cohort default rate periods

    February August

    Draft default rates released

    to schools only

    Official rates released to

    schools and the general public

    September January

    Draft Rate Cycle Official Rate Cycle

    Source: CDR Quick Reference Guide

  • 4

    What Is a Cohort Default Rate

    Cycle?

    The official cohort default rates are available to

    the public through a searchable database at:

    ed.gov/FSA/defaultmanagement/cdr.html

    Source: CDR Quick Reference Guide

    February August

    Draft default rates released

    to schools only

    Official rates released to

    schools and the general public

    September January

    Draft Rate Cycle Official Rate Cycle

    No Sanctions or Benefits

    Associated with Draft CDR

    Keep in mind

    Schools that fail to challenge the accuracy of

    draft cohort default rate data through an

    incorrect data challenge may not contest the

    accuracy of the data used in the official rate

    Fiscal

    Year

    (FY)

    Denominator

    # in

    Repayment

    Numerator

    # in Default

    Draft CDR

    Publication

    Date

    Official CDR

    Publication

    Date

    Rate Used for

    Sanctions

    2010 10/01/09 09/30/10 3-yr: 10/01/09 09/30/12 3-yr: Feb 2013 3-yr: Sept 2013 N/A

    2011 10/01/10 09/30/11 2-yr: 10/01/10 09/30/12

    3-yr: 10/01/10 09/30/13

    2-yr: Feb 2013

    3-yr: Feb 2014

    2-yr: Sept 2013

    3-yr: Sept 2014

    2-yr rate (25%)

    3-yr rate (30%)

    2012 10/01/11 09/30/12 3-yr: 10/01/11 09/30/14 3-yr: Feb 2015 3-yr: Sept 2015 3-yr rate (30%)

    Publication of CDRs

  • 5

    How Are Schools Notified?

    CDR notification packages

    Sent electronically to all domestic schools

    (eCDR)

    Using Student Aid Internet Gateway (SAIG)

    Allowed five business days to report problems

    Timelines for submitting challenges, adjustments,

    and appeals begin six days following announced

    transmission date, as posted on IFAP (ifap.ed.gov)

    What is Included in the eCDR?

    CDR package includes

    Cover letter

    Two Loan Record Detail Reports (LRDR)

    Reader-friendly

    Extract-type

    CDR package includes

    SHDRLROP

    SHCDRROP

    SHCDREOP

    Cover letter

    Loan Record Detail

    Reports (LRDR) Reader-friendly

    Extract-type

    Decoding the Loan Record

    Detail Report

  • 6

    Loan Record Detail Report (LRDR)

    Contains borrower information for Stafford

    loans that were used to calculate a

    schools draft or official cohort default rate

    Includes borrowers

    Name, Social Security number

    Date borrower entered repayment

    Date of default (if applicable)

    Loan type

    Borrowers with multiple loans will be

    counted only once

    Review LRDR

    Check for accuracy

    Compare to school records

    Repayment Date

    Default Status

    Cancellations/Refunds

    What is Included in the eCDR?

    Beginning with the

    FY 2009 cohort all

    schools MUST use

    eCDR Appeals to

    prepare and submit

    challenges or

    adjustments

  • 7

    Reader-Friendly LRDR

    Loan Record Detail Report

    Data Manager

    Three-digit code used to identify entity

    reporting the information

    Guaranty Agency Department of Education

  • 8

    Loan Record Detail Report

    Repayment Date

    Indicates when the borrower began repayment

    Determines if the loan is included in

    the denominator

    Loan Record Detail Report

    Default Date

    Indicates the date A Direct Loan is considered in default based on its past due

    status

    OR

    Guarantee agency paid a default claim to a lender for a FFELP

    Loan

  • 9

    Loan Record Detail Report

    CDR Usage

    Indicates how the loan is included in the calculation

    D Denominator only

    B Both Numerator and Denominator

    N Not Used

    E Eligible, but not counted

  • 10

    Important Codes to Know

    Source: CDR Guide, page 2.3-7

    Important Codes to Know

    Source: CDR Guide, page 2.3-8

    Collecting and Comparing

    Data

  • 11

    Collecting the Data

    Determine data that needs to be captured

    Last date of attendance (LDA)

    Less than half-time date (LTH)

    Withdrawal date (WD)

    Date entered repayment (DER)

    Claim paid date/default date (CPD/DD)

    Use a spreadsheet or database to collect

    this data

    Implement this process early

    Collecting the Data

    Internal resources

    available on-campus

    External resources

    NSLDS

    Servicer reports

    Guaranty agencies

    Determine where

    to find data

    Possible Errors on LRDR

    LRDR incorrectly:

    Reports a data element and the data element

    should be changed

    Includes a borrower whose repayment date

    does not fall within the cohort fiscal year and

    the borrower should be removed from the

    cohort rate calculation

    Excludes a borrower who entered repayment

    within the cohort and the borrower should be

    added to the cohort rate calculation

  • 12

    Should the Loan be Included in

    FY09 3-year CDR?

    Darin

    Graduated from your school 11/4/2008

    NSLDS reveals Darin transferred to another school on 2/4/2009

    LDA

    11/4/2008

    Add 6 months,

    1 day

    5/5/2009

    Date entered repayment

    Actual DER

    5/13/2010

    Default date

    5/8/2011

    Should the Loan be Included in

    FY09 3-year CDR? No

    Y Defaulted between 10/1/2008 9/31/2011 Defaulted 5/8/2011

    N FY2009 (10/1/2008 09/31/2009)

    Date Darin entered repayment 5/13/2010

    If date of repayment is delayed by re-enrolling in school prior to the end of grace, inclusion in a CDR calculation is also delayed

    Darin

    Should the Loan be Included in

    FY09 3-year CDR?

    Left your school 11/4/2008

    Transferred to another school 1/12/2010

    Loans are deferred on 1/12/2010

    LDA

    11/4/2008

    Add 6 months,

    1 day

    5/5/2009

    Date entered repayment

    05/05/2009

    (Loan deferred 1/12/2010)

    Default date

    NA

    Kara

  • 13

    Should the Loan be Included in

    FY09 3-year CDR? Yes

    Deferments or forbearances do not alter the date the borrower entered repayment

    N Defaulted between 10/1/2008 - 9/31/2011 No default

    Y FY2009 (10/1/2008 09/31/2009)

    Date Kara entered repayment 05/05/2009

    Kara

    Should the Loan be Included in

    FY09 3-year CDR?

    Withdrew from your school 6/1/2008

    Defaulted on