Student Loan Payment Suspension
On March 20, 2020, the Secretary of Education directed the office of Federal Student Aid to provide the following relief on ED-held federal student loans:
- suspend loan payments
- stop collections on defaulted loans
- Temporarily set interest rates to 0%
On March 27, 2020, Congress passed, and the president signed into law, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which provided for the above relief measures through Sept. 30, 2020.
On Aug. 8, 2020, President Trump directed the Secretary to continue to suspend loan payments, stop collections, and waive interest on ED-held student loans until Dec. 31, 2020.
Additional information can be found here:
Default Management Impacts
Pantheon has suspended delinquency assistance for our clients for the duration of the loan payment freeze. We intend to restart service in January 2021. The Department of Ed and loan servicers will be contacting all borrowers ahead of time to inform them when payments will resume.
SCHOOL DEFAULT RATES ARE NOT AT RISK: No required monthly payments means no possibility of delinquency which means no potential to default.
Official 2017 Cohort Default Rates
On September 28, 2020 the Department of Education released FY2017 OFFICIAL 3-year Cohort Default Rates for all eligible schools. The 2017 cohort consists of borrowers who entered repayment on FFELP or FDLP Stafford loans during FY2017 (between 01Oct2016 and 30Sept2017). Any of these borrowers who defaulted before 30Sept2019 will contribute to their school’s 3-year CDR.
These official rates will be published and made available to the public. Official rates can be found here by searching for OPE-ID or school name.
Additional information on the release can be found in this announcement and press release:
Retrieving your Rate
All schools enrolled in the Electronic Cohort Default Rate (eCDR) process will automatically receive their Cohort Default Rates and accompanying documentation via their Student Aid Internet Gateway (SAIG) mailbox. Your cohort default rate is found on the first page of the Cover Letter.
Note: We encourage any school not already signed up for the eCDR process to do so by completing the enrollment form on the SAIG Enrollment Web site.
Any school not enrolled in the eCDR process may view their Cohort Default Rates from the National Student Loan Data System (NSLDS) via the NSLDS Professional Access Web site. They may also manually request the accompanying documentation (aka Loan Record Detail Reports). Instructions for requesting and retrieving LRDRs can be found here.
Pantheon requests/retrieves data, letters and reports related to all CDRs for our clients via NSLDS as it becomes available.
Again: We strongly encourage any school not already signed up for the eCDR process to do so by completing the enrollment process on the SAIG Enrollment Web site. If you are unsure of your enrollment status, click here.
On November 22, 2011, the Department of Education released an updated version of the Cohort Default Rate Guide. The new guide incorporates changes for the transition to the 3-year default period and includes information on electronic cohort default rate (eCDR) appeals.
Click the links below for the official announcement and PDF versions of the guide.