Federal student loan borrowers generally have to begin repaying their loans six months after graduating, leaving school, or dropping below half-time enrollment. If borrowers make no payments for any period of 270 days, or roughly 9 months, they will default on their student loans.
The U.S. Department of Education (Dept) tracks the number and percentage of federal student loan borrowers who default on their student loans within three years of entering repayment. This is the Cohort Default Rate, commonly referred to as “three-year” CDRs.
The Department of Education releases official cohort default rates for each school that is eligible to participate in the federal student loan program once per year. The current rates (FY 2021) were released in September 2024, and the FY 2022 rates should be released in September 2025. The national cohort default rate average and Radford University's cohort default rate is currently 0% due to the moratorium on student loan payments and interest charges that was in effect until August 31, 2023.
Cohort Default Period
The three-year period that begins on October 1st of the fiscal year when the borrower enters repayment and ends on September 30th of the second fiscal year following the year in which the borrower entered repayment. This is the period during which a borrower’s default affects the school’s cohort default rate.
Cohort Fiscal Year or Cohort Year
The fiscal year for which the cohort default rate is calculated. For example, when calculating the 2021 cohort default rate, the cohort fiscal year is FY 2021 (October 1, 2020, to September 30, 2021).
Default
Failure to repay debt. Loans must be repaid. Making no payments on student loans, which are in repayment status, for 270 days will cause loans to go in a default status. Defaulting on student loans is very detrimental to your credit.
Federal Fiscal Year
October 1 to September 30 - Cohort default rates are based on federal fiscal years. Federal fiscal years begin October 1st of a calendar year and end on September 30th of the following calendar year. Each federal fiscal year refers to the calendar year in which it ends.
Treasury Offset
When your federal and state income tax refunds are intercepted and applied toward the repayment of your defaulted loan.
Wage Garnishment
When your employer is required to withhold a portion of your pay and send it to your loan holder to repay your defaulted loan.
2021 | 2020 | 2019 | |
Default rate | 0% | 0% | 1.8% |
Number in default | 0 | 0 | 53 |
Number in repayment | 3,049 | 2,930 | 2,837 |
The consequences of defaulting can not only impact your ability to borrow but can impact your finances as well. Consequences may include the following: