Student Loan Default Rate

Everett Community College 3 Year Default Rates (CDRs)

The Fiscal Year 2020 3 Year Cohort Default Rate (CDR) for Everett Community College is 0%. This includes 410 borrowers in repayment during the 2017 Fiscal Year. Those students were tracked over a three year period and 11 of them defaulted on their student loans. The Department of Education publishes Official Cohort Default Rates for all colleges participating in federal loan programs.

Cohort Default Rate (CDR)

The percentage of a school's borrowers who enter repayment on federal student loans during a federal fiscal year (October 1 to September 30) and default within the cohort default period.

Cohort Fiscal Year or Cohort Year

The fiscal year for which the cohort default rate is calculated. For example, when calculating the 2017 cohort default rate, the cohort fiscal year is FY 2017 (October 1, 2016 to September 30, 2017).

Default

Failure to repay a debt. Loans must be repaid.  Making no payments on student loans, that 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.

Consequences of federal student loan default:

The consequences of defaulting can not only impact your ability to borrow but can impact your finances as well. Consequences may include the following:

• The entire unpaid balance of your loan and any interest you owe becomes immediately due.
• Your loans may be turned over to a collection agency.
• You can be sued for the entire amount of your loan.
• You will be liable for the costs associated with collecting your loan, including costs and attorney fees
• Your wages may be garnished.
• Your federal and state income tax refunds may be taken for treasury offset.
• The federal government may withhold part of your Social Security benefit payments.
• Your defaulted loans will appear on your credit history for up to 7 years after the default claim is paid.
• It may take years to reestablish a good credit record.
• You may not be able to purchase or sell assets, such as real estate.
• You will not receive additional federal financial aid until you repay the loan in full or make arrangements to repay what you already owe and make at least six consecutive, on-time, monthly payments. 
• You may be ineligible for assistance under most federal benefits programs.
• You can no longer receive deferment or forbearance, and you lose eligibility for other loan repayment benefits, such as the ability to choose a specific repayment plan.
• Subsidized interest benefits will be denied.
• You may not be able to renew a professional licenses.
• You may be prohibited from enlisting in the Armed Forces.