Driving Down Default: How to Strengthen the Cohort Default Rate to Further Reduce Federal Student Loan Default Risk

The cohort default rate (CDR) has worked to reduce students’ risk of default, but decades of experience have also revealed weaknesses that policymakers must tackle. This report outlines key priorities for strengthening the CDR to further reduce student loan default, including specific recommendations to protect against manipulation, build in greater incentives for schools to continue to meaningfully improve their CDRs, and ensure the CDR effectively targets high-risk colleges.