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OKLAHOMA COLLEGE ASSISTANCE PROGRAM (OCAP) Debt Levels Cohort Default Rates Default Management Plans Rick Edington, Executive Director Mary Heid, Director.

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Presentation on theme: "OKLAHOMA COLLEGE ASSISTANCE PROGRAM (OCAP) Debt Levels Cohort Default Rates Default Management Plans Rick Edington, Executive Director Mary Heid, Director."— Presentation transcript:

1 OKLAHOMA COLLEGE ASSISTANCE PROGRAM (OCAP) Debt Levels Cohort Default Rates Default Management Plans Rick Edington, Executive Director Mary Heid, Director for Policy, Compliance & Training

2 DEBT LEVELS- NATIONAL VS. OK Project on Student Debt (4 Year Public and Private Data Only) 2009 National Average - $24, 000 OK - $20,469 (15% lower) State Rank National Average $25,250 OK- $20,708 (18% lower) State Rank 40

3 IPEDS- AVERAGE LOAN SIZE

4 IPEDS- AVERAGE % BORROWING

5 COHORT DEFAULT RATES Definition Cohort Default Rate: The percentage of students in the cohort who default that cohort year or: in the next fiscal year (2-year CDR). in the next two fiscal years (3-year CDR). 2 to 3 year transition FY2009 borrowers who entered repayment between October 1, 2008 and September 30, 2009

6 COHORT DEFAULT RATES Publish Dates for Two-Year and Three- Year CDRs Published Two-Year Cohort Three-Year Cohort n/a2011

7 BENEFITS Timeframe: Beginning October 1, 2011, benefits are available only if the three most recently published 2-year or 3-year CDRs are less than 15% (up from 10%). Beginning October 1, 2014, benefits are available only if the three most recently published 3-year CDRs are less than 15%. Benefit #1: You may choose not to delay the first disbursement of a loan for 30 days for first-time, first-year undergraduate borrowers. Benefit #2: You may deliver or disburse, in a single installment, loans that are made for one semester, one trimester, one quarter, or a four- month period.

8 SANCTIONS Timeframe: Beginning October 1, 2011, sanctions are applied only if the three most recently published 2-year CDRs are greater than 25% or any CDR is greater than 40%. Beginning October 1, 2014, sanctions are applied only if the three most recently published 3-year CDRs are greater than 30% or any CDR is greater than 40%. Schools at or above threshold: First Year: Create a default prevention task force and submit a plan to DE. Second Consecutive Year: Task force must strengthen plan and re-submit to DE. Whenever two of the last three rates are 30% or above, school will be placed on provisional certification (Oct-2014)

9 ESTIMATED NATIONAL YEAR RATES Type of InstitutionPredicted FY Year Rate Total15.6% Public11.7% < 2 year19.3% 2-3 year19.4% 4 year8.3% Non-Profit7.9% < 2 year24.0% 2-3 year18.5% 4 year7.8% For-Profit29.3% < 2 year27.8% 2-3 year29.6% 4 year29.4% Source: Mark Kantrowitz, (FinAid.org) May 23, 2011

10 DEFAULT MANAGEMENT PLANS Required for schools with CDR sanctions threshold. Good idea for any school! OCAP will help!


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