USA Funds Cohort Analysis Tool Simplifies Review of Loan Data
This week’s release of draft cohort default rates signals the time to review borrower loan data for errors that may affect final default rates. The USA Funds Cohort Analysis ToolSM helps schools identify borrower records in the Electronic Loan Record Detail Report that may need to be corrected — saving you time in identifying potential cohort challenges.
By applying the tool to the Loan Record Detail reports, available from the U.S. Department of Education using Student Aid Internet Gateway, schools can identify records that may prompt potential cohort default rate challenges.
The USA Funds Cohort Analysis Tool also helps schools:
- Identify discrepancies within borrowers’ loans that may require further review.
- Learn more about borrowers who have defaulted.
- Quickly identify sub-populations, such as borrowers who have a status of paid-in-full due to consolidation loans.
As part of the review, the tool double-checks time lines, such as when a borrower’s grace period began and ended, and when the student entered repayment. If the tool finds a discrepancy, you can review account information to confirm the accuracy of the data. This function eliminates the need to manually analyze all accounts in the cohort and pinpoints only the accounts that may need to be corrected.
Once the USA Funds Cohort Analysis Tool runs data, it organizes the data in categories and presents it in tabs within a Microsoft Excel document. For example, the “Potential Denominator Appeals” and “Potential Numerator Appeals” tabs display a list of only those borrowers identified by the tool as potential cohort rate appeals based on several data comparisons made on the borrower’s records. The “Defaulted Loans” tab lists only those default claims counted by the Department of Education in the numerator of your cohort default rate.
Next steps in preparing appeal
After identifying issues for cohort appeal, verify that the information is incorrect, and then process documentation of the challenge. Submit that information to the data manager — guarantor or servicer — that is responsible for the loans in question.
The data manager then will verify whether the information needs to be corrected based on the guarantor’s or servicer’s records, and make the changes in National Student Loan Data System and send the challenge to the Department of Education.
As a reminder, the Department of Education is launching an optional electronic CDR appeal process this year. This new process, called “eCDR Appeals,” is a Web-based application that facilitates the exchange of data between schools, service providers and the Department for three types of appeals: Incorrect Data Challenge, Uncorrected Data Adjustments and New Data Adjustments. The application will track and monitor all activities related to these appeals.
Although the use of the new Department of Education process is optional for schools, data managers such as USA Funds® are required to respond to schools in the same format that the schools use to submit the data. The Department offers more information about eCDR appeals.
Identifying at-risk borrowers
Using data gleaned by USA Funds Cohort Analysis Tool, schools also can work to prevent at-risk borrowers from defaulting. USA Funds’ Web-based communication tool USA Funds Debt Manager® can help you communicate with these borrowers.
To learn more about whether the USA Funds Cohort Analysis Tool is right for your school, contact your USA Funds debt management consultant. Schools using the USA Funds Connection® portal can find information about the USA Funds Cohort Analysis tool in the portal’s Debt Management section.