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Description: Tags: Ch2pt1Fig4upd061203

This document outlines how different loan situations affect the denominator and numerator in cohort default rate calculations. It describes 6 scenarios: 1) When a loan is discharged before repayment, it is included in the denominator but not numerator. 2) When a loan is discharged after repayment but before default, it is included in both. 3) When a borrower defaults and the loan is later discharged, it is included in both. 4) Loans discharged due to school closure are excluded from both. 5) Loans fully canceled within 120 days are excluded from both. 6) Partially canceled loans within 120 days are included in the denominator for the uncancelled portion if the borrower defaults.

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32 views

Description: Tags: Ch2pt1Fig4upd061203

This document outlines how different loan situations affect the denominator and numerator in cohort default rate calculations. It describes 6 scenarios: 1) When a loan is discharged before repayment, it is included in the denominator but not numerator. 2) When a loan is discharged after repayment but before default, it is included in both. 3) When a borrower defaults and the loan is later discharged, it is included in both. 4) Loans discharged due to school closure are excluded from both. 5) Loans fully canceled within 120 days are excluded from both. 6) Partially canceled loans within 120 days are included in the denominator for the uncancelled portion if the borrower defaults.

Uploaded by

anon-991881
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Situation How it Affects the Denominator How it affects the Numerator

The borrower’s loan was The borrower is included in the The borrower is not included
discharged due to death cohort fiscal year based on the because the borrower did not
bankruptcy, disability, or data the loan was discharged. default.
other type of loan discharge The date of discharge becomes
before the borrower entered the date of repayment.
repayment
The borrower’s loan was The borrower is included in the The borrower is not included
discharged due to death, cohort fiscal year when the because the borrower did not
bankruptcy, disability, or borrower entered repayment. default.
other type of loan discharge
after the borrower enters
repayment but before the
end of the cohort default
period and before the
borrower defaults or meets
other specified conditions.
The borrower enters The borrower is included in the The borrower is included because
repayment and defaults cohort fiscal year when the the borrower defaulted or met
or meets other specified borrower entered repayment. other specified conditions during
conditions during the cohort the cohort default period.
period. Subsequently, the
loan is discharged due to
death, bankruptcy, disability
or other type of loan
discharge.
The borrower defaulted on a The borrower’s loan is not The borrower is not included
loan which was discharged included because discharge loans because the discharged loan is not
due to school closure and or are not included in the cohort included in the cohort default rate
false certification default rate calculation. calculation.
A loan was fully refunded, Canceled loans are not included The borrower is not included
or canceled, within 120 days in the cohort default rate because canceled loans are not
of loan disbursement. calculation. included in the cohort default rate
calculation.
A loan was partially The borrower is included in the The borrower is included if the
refunded within 120 days of cohort fiscal year when the borrower defaulted or met other
loan disbursement. borrower entered repayment on specified conditions during the
the portion of the loan that was cohort default period.
not refunded.

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