A cohort default rate is the percentage of loan borrowers who enter repayment on certain loans through the Federal Family Education Loan Program (FFELP) or William D. Ford Federal Direct Loan  Program (Direct Loan) l during a particular federal fiscal year (FY) which is defined as October 1 to September 30, AND subsequently defaults or meets other specified conditions prior to the end of the next fiscal year.

Under the new federal provisions of the Higher Education Opportunity Act of 2009, an institution's cohort default rate is now calculated as the percentage of borrowers in the cohort who default before the end of the second fiscal year following the fiscal year in which the borrowers entered repayment. This extends the length of time in which a student can default from 2-Years to 3-Years. Beginning with FY2011, the 3-year default rate will be the only official rate.  Listed below is MSU’s 3-YEAR Cohort Default Rate (calculated for the first time in FY09):

  • FY09 = 10.2% (state average is 16.1% and national average is 13.4% which encompass all public, private and for-profit institutions)
  • FY10 = 9.6% (state average is 17.3% and national average is 14.7% which encompass all public, private and for-profit institutions)
  • FY11 = 7.4% (state average is 15.9% national average is 13.7% which encompass all public, private and for-profit institutions)


 Prior 2-Year Default Rates

The U.S. Department of Education releases official 2-Year cohort default rates annually. Listed below are MSU’s 2-YEAR Cohort Default Rates for the prior four (4) years, including the most current:

  • FY08 = 8.1%
  • FY09 = 7.1%
  • FY10 = 8.3%
  • FY11 = 4.2% CURRENT and FINAL