Cohort default rate (CDR)
The share of student loan borrowers who fail to make a payment within a specific period of time (depending on the type of loan) after entering repayment (i.e., completing and not continuing into another higher education institution, dropping below half-time enrollment, or stopping out). The standard period of time measured is three years after entering repayment.
Students, especially students from low-income backgrounds and students of color, often meet college costs by taking out student loans, which can depress graduation rates, cut into future earnings, and repress wealth accumulation after exit. 5 The cohort default rate (CDR) is relevant to assessing return on investment and postsecondary opportunity, helping colleges understand which students (from which programs) are having trouble earning enough to meet their debt obligations. College leaders can leverage the CDR to identify where to target financial aid, improve career placement support, or reduce costs for students.
While college leaders will find value in collecting data on all students, consistently disaggregating data whenever possible can reveal outcome disparities. This information is essential for colleges developing strong reform plans to improve and close disparities in student success.
- Race/ethnicity
- Gender
- Family/Personal Income
- Age
- Parent/Dependent status
- Attendance intensity
- First-generation status
- Veteran status
Students may identify with one or many of the above identities. College leaders should consider how these different identities intersect and pay close attention to these relationships and how they may influence each student’s experience.