Reminder: USA Funds Debt Manager Changes to Reflect New Cohort Year Oct. 1

USA Funds Debt Manager^® users are reminded that the federal cohort reporting period for 2008 ends Sept. 30, 2009, and the period for 2009 begins Oct. 1, 2009.

The repayment year settings in USA Funds Debt Manager will change on Oct. 1 to reflect the new period, as follows:

• The setting for Current Repayment Year will be the 2009 period — 10/1/2008-9/30/2009. USA Funds Debt Manager screens will reflect 2009 as the Current Repayment Year.
  • Any strategy set for the Current Repayment Year will focus exclusively on borrowers from the 2009 repayment year — 10/1/2008-9/30/2009 — unless the strategy is set up to also include borrowers from the Previous Repayment Year.
• The setting for Previous Repayment Year will be the 2008 period — 10/1/2007-9/30/2008.
• The setting for Future Repayment Year will be the 2010 period — 10/1/2009-9/30/2010 — and subsequent periods.

CDR calculation change
USA Funds also reminds USA Funds Debt Manager users that it will adjust the tool to reflect the change in cohort default rate calculation.

Effective with the 2009 repayment year, beginning Oct. 1, the cohort default rate will be calculated based on borrowers who default within three fiscal years. This formula is a change from the current calculation, which is based on borrowers who default within two fiscal years.

USA Funds Education Access Report articles and other communications will provide additional information in the coming weeks about changes to USA Funds Debt Manager that will accommodate the CDR calculation change.

More than 1,100 schools nationwide use USA Funds Debt Manager, a comprehensive Web-based communication tool that helps postsecondary institutions stay in contact with student loan borrowers to promote successful loan repayment and prevent past-due loans and defaults.

Contact your USA Funds debt management consultant with questions or for additional information.