The Department of Education has released the latest “Official National Cohort Default Rates” for Federal student loans (i.e. Title IV federal direct lending) and has compared each cohort group to the paired statistics for the prior two years. These latest borrower default statistics are for FY ’13 and as such are compared to FY’11 and FY’12. The main three school types evaluated are: Public, Private, and Proprietary.

The Public segment is by far the largest, with almost 2.7 million borrowers entering repayment in FY’13. Next in terms of the size of the borrower base is the Proprietary segment, which in FY’13 had almost 1.4 million borrowers entering repayment. The Private segment by comparison had just over 1.1 million borrowers enter repayment in FY’13.

Overall, in FY’13 borrower default rates decreased compared to FY’12 and FY’11. This trend was also seen in both the Public and Proprietary school segments. Private school default rates, while the lowest overall, were elevated slightly in FY’13 compared to FY’12.

Borrower Default Rates


Over the past several years, there has been a lot of attention paid to student borrower default rates. Schools, default prevention specialists, and technology companies, including Loan Science, have worked together, leveraging data and analytics to drive down cohort default rates, particularly in the public and proprietary school segments. Loan Science works with more than 160 schools, including many of the largest schools in the industry, and as a result we expect to see the cohort default rates continue to improve. 

With continued advances in data management tools, predictive analytics, configurable reporting, and contact center technology, both schools and students will have access to the information and programs they need to continue to improve the performance of federal student lending programs.

Complete data on available on these cohorts. 

To get a better understanding of your individual school’s CDR, contact Ben Carey at Loan Science
at 443-910-1974.