Many schools see their Cohort Default Rate (CDR) at zero and assume all is well. But the reality tells a different story. Recent data reveals that over 30% of borrowers are not making payments—and many have no plans to start. This hidden wave of delinquencies will inevitably lead to rising defaults, impacting your institution’s CDR, reputation, and financial health.

The current zero CDR is only a temporary relief due to the COVID-19 repayment pause. Beneath this surface calm lies a growing financial struggle for borrowers. As repayment resumes, delinquencies will rise—and defaults will follow. Without proactive intervention, institutions risk facing dramatic spikes in CDRs, jeopardizing their federal financial aid eligibility and overwhelming their financial aid teams.

• A 15% CDR triggers a shift from single to multiple disbursements for federal financial aid, causing delays, frustrated students, and strained resources.
• A 30% CDR for three consecutive years risks losing eligibility for Pell Grants and Direct Loans.
• A 40% CDR for even one year can result in immediate sanctions.

The stakes are high, but you don’t have to face them alone.

Inceptia offers comprehensive solutions to help schools proactively promote positive borrowing and manage delinquencies before they turn into defaults. From student loan repayment wellness programs to real-time data insights, Inceptia equips you to stay ahead of the curve – protecting students from future loan defaults and safeguarding your institution’s financial health.