Cohort Default Rates Are Good For Something, Just Not Much

Abstract: Can anything significant really be from the cohort default rate measurement? The answer is yes… and no. We need to know how well students are paying back their loans. But without supporting measurements, the current cohort default rate (CDR) is nearly meaningless. The notion that the CDR reflects the quality of an educational institution is suspect. Because the CDR measures headcount, rather than dollars, the real impact of a school’s defaults on federal resources is never considered. If the formula measured dollars, some more elite schools may be running for cover!

You can read the complete April 28, 2008 Greentree Gazette article on-line.