Cohort Default Rate

Each year the U.S. Department of Education calculates a cohort default rate on Federal Direct Loans by institution.  A cohort default rate by definition is the percentage of a school's borrowers who enter repayment on certain Direct Loans during that fiscal year and default within the cohort default period (the end of the next fiscal year for a two-year rate and the end of the following year for a three-year rate).

Luther College's 2010 Fiscal Year Direct Loan Default Rate is 1.3% (two-year rate) and our 2009 Fiscal Year Direct Loan Default Rate is 2.8% (three-year rate). 

By comparison, the National 2010 Fiscal Year Default Rate is 9.1% (two-year rate) and the National 2009 Fiscal Year Default Rate is 13.4% (three-year rate).