Cohort Default Rate

Cohort Default Rate

Each year the U.S. Department of Education calculates a cohort default rate on Federal Direct Loans by institution. A cohort default rate by definition is the percentage of a school's borrowers who enter repayment on certain Direct Loans during that fiscal year and default within the cohort default period (the end of the following fiscal year for a three-year rate).

Luther College's 2013 Fiscal Year Direct Loan Default Rate is 1.1 percent.

By comparison, here are some additional cohort default rates for the same period:

  • The national cohort default rate is 11.3%
  • The average cohort default rate among private four-year colleges is 6.5%
  • The average cohort default rate among all Iowa colleges is 11.9%