New Tool from Inceptia Allows Schools to Monitor Default Rates in Real Time

Ann McClure's picture
Wednesday, February 6, 2013

INCEPTIA

Lincoln, Neb. – A new Web-based tool designed and offered by Inceptia makes it possible for colleges and universities to use real-time data to proactively address defaulters and protect their cohort default rate.

The Cohort Default Estimator is a reporting tool created for schools to use in tandem with Inceptia’s Repayment Outreach solution. Users can track their active cohort years at any time by uploading a National Student Loan Data System (NSLDS) School Portfolio Report within the Repayment Outreach product.

Once uploaded, the report provides a school with its numbers of borrowers in repayment and number of borrowers in default. It also shows an estimate of the school’s default rate as of the file upload date. Schools may use the data to download a list of loan details for each defaulted borrower.

“The Cohort Default Estimator gives schools the power to see what’s happening right now with their borrowers,” said Dave Macoubrie, Inceptia vice president of repayment solutions. “By proactively addressing the cohort of student defaulters, they can take steps to remove them from the list and make a positive impact on the trajectory of their school’s cohort default rate.”

Tracking that rate has become even more crucial for colleges and universities. In 2012, the U.S. Department of Education changed the way it calculates student loan cohort draft rates, changing from a two-year rate to a three-year rate. The new calculation puts more schools at risk for a higher default rate, as well as the potential penalties that go with exceeding the rate limit.

In this new era of student loan default, Inceptia’s estimator tool can help schools take control of their rate. Besides giving schools anytime access to current and projected cohort rates, the Cohort Estimator Report illustrates the percentage that one borrower can impact the rate — and how many borrowers must be saved to reduce the rate by 1 percent. “We want to show every school the impact they can have on their rate, simply by lowering it by even one percentage point,” Macoubrie said. “For some institutions, that may be as few as five borrowers. But lowering the rate over time can have a significant impact on a school.” Schools interested in ordering the Cohort Default Estimator may contact Inceptia at 888.529.2028.

ABOUT INCEPTIA

Inceptia, a division of NSLP, is dedicated to providing much-needed support to help schools effectively fulfill their new roles and responsibilities. Through comprehensive data analysis, financial education, default prevention and financial aid management, we are confident we can help all students, not just borrowers, become financially responsible adults. We are here to make it possible for more schools to launch brilliant futures. More information is available at Inceptia.org.