The U.S. Department of Education today released the FY 2014 three-year federal student loan cohort default rate. The rate increased slightly from 11.3 percent to 11.5 percent for students who entered repayment between fiscal years 2013 and 2014.

During the tracking period for the FY 2014 borrower cohort (Oct. 1, 2013 to Sept. 30, 2016), more than five million borrowers entered repayment, and 580,671 of them—or 11.5 percent—defaulted on their loans. Those borrowers attended 6,173 postsecondary institutions across the nation.

Over the past five years, the rate has decreased 3.2 percentage points from a high of 14.7 percent to 11.5 percent today.

The FY 2014 cohort default rate is the percentage of a school’s borrowers who entered repayment on Federal Family Education Loan (FFEL) Program or William D. Ford Federal Direct Loan (Direct Loan) Program loans between Oct. 1, 2013 and Sept. 30, 2014 and subsequently defaulted prior to Sept. 30, 2016.

Visit the default management website for information about the national student loan default rate, as well as rates for individual schools, states, types of postsecondary institutions and other details.

Resources to Help Borrowers Manage Student Loan Debt

The Department is committed to helping borrowers successfully manage their federal student loan debt by providing a wealth of information and resources, including how to find an affordable repayment plan, at StudentAid.gov/repay. Additionally, the Department communicates to borrowers through email outreach campaigns and offers loan counseling that allows borrowers the ability to select their repayment plan based on their individual circumstances during exit counseling.

Sanctions

Schools with high default rates may lose their eligibility to participate in or expand their federal student aid programs. This year, seven proprietary schools, two public, and one private institution are subject to loss of eligibility for default rates that either were 30 percent or greater for three consecutive years or were more than 40 percent for the latest year, or both.

Those schools include:

• IL – Chicago – Larry's Barber College
• KY – Cumberland – Southeast Kentucky Community and Technical College
• ND – Bismarck – United Tribes Technical College
• ND – Minot – Headquarters Academy of Hair Design
• NY – Hempstead–Long Island Barber Institute (The)
• OH – Columbus – Daymar College
• SC – Walterboro – Cosmetics Arts Institute
• TN – Madison – Nashville Barber and Style Academy
• TX – Houston – Jay's Technical Institute
• VA – Culpeper – Culpeper Cosmetology Training Center

The Higher Education Opportunity Act of 2008 amended the law to require that, starting in 2014, sanctions against institutions with high cohort default rates would be based on the three-year cohort default rates.

All institutions with a default rate that is equal to or greater than 30 percent must establish a default prevention task force that prepares a plan to identify the factors causing the school's cohort default rate to exceed 30 percent and submit the plan to the Department.

The Department's office of Federal Student Aid (FSA) provides extensive assistance to higher education institutions, including webinars and online training; state, regional and national association training forums, and face-to-face training events.

Information about applying for, receiving, or repaying federal student aid can be found at StudentAid.gov.

To make a student loan payment or apply for an income-driven repayment plan, visit StudentLoans.gov.

Resources and information for financial aid professionals is available on the Information for Financial Aid Professionals (IFAP) online portal.

Resources and information for counselors, college access professionals, and mentors can be found on the Financial Aid Toolkit.

To share an experience related to your federal student aid, visit StudentAid.gov/feedback.