Cohort Default Rate
A cohort default rate is the percentage of a school’s borrowers who enter repayment on federal student loans during a particular fiscal year, Oct 1 to Sept. 30, and default within the cohort default period.
The Department of Education calculated the school’s cohort default rate by dividing the number of borrowers from the school entering repayment in a cohort year and default within a 3-year period divided by the number of borrowers from the school entering repayment in the cohort year.
Summit Salon Academy - Cohort Default Rates - FY 2018, 2017, and 2016
7 students defaulted out of 87 students
5 students defaulted out of 87 students
2 students defaulted out of 91 students
National Average Cohort Default Rate
- Year: 2018
- Default Rate: 7.3%
Consequences of Defaulting on Student Loans
There are dire consequences to defaulting on your student loan. If you make monthly student loan payments, default occurs when you fail to make a payment for 270 days. There are severe consequences to defaulting on your student loans. The consequences include:
- The entire unpaid balance of your loan and any interest is immediately due and payable. The student loan debt will increase due to late fees, interest, court costs, collection fees, attorney’s fees, etc.
- You no longer can request a deferment or forbearance.
- You lose eligibility for additional federal student aid.
- Your loan is assigned to a collection agency, and it will be reported as delinquent to credit bureaus.
- The IRS can take your federal and state tax refund to collect any of your defaulted student loan debt.
- Your wages can be garnished.