This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Lincoln Educational Services Corporation Comments On Unofficial Three-Year Cohort Default Rates Provided By The Department Of Education

WEST ORANGE, N.J., Dec. 9 /PRNewswire-FirstCall/ -- Lincoln Educational Services Corporation (Nasdaq: LINC) ("Lincoln") today reported that it has obtained from the Department of Education (DOE) its unofficial trial three-year cohort default rates (CDRs) for the fiscal years ending September 30, 2005, 2006 and 2007.  The three-year CDRs will replace the current two-year CDRs for purposes of determining a school's eligibility to participate in Title IV programs beginning with the 2009, 2010, and 2011 three-year CDRs.

The unofficial three-year CDRs are for informational purposes only and are intended to provide schools with an indication of the three-year CDR calculation that the DOE will first use for 2009 CDRs released in 2012.  Under the three-year 2009 CDR calculation, the student loan default rate measurement period will increase from two years to three years for students who entered repayment on their federal student loans between October 1, 2008 and September 30, 2009.  The DOE will not impose sanctions based on the new three-year CDRs until 2014, when default rates for three consecutive fiscal years will have been calculated under the new methodology.  Until that time, the DOE will continue to calculate and publish two-year CDRs and to base sanctions on those two-year CDRs.

A school may lose its eligibility to receive federal financial aid under certain Title IV programs if its CDRs exceed specified percentages.  Currently, a school's two-year CDRs are calculated annually based on the number of current and former students who are scheduled to begin repaying their federal student loans in one fiscal year and who default in that fiscal year or in the next fiscal year.  A school loses eligibility to participate in certain Title IV programs if its two-year CDRs are 25% or above for each of the three most recent fiscal years or greater than 40% in a single fiscal year.  

Under the new regulations, three-year CDRs will be calculated based on the number of current and former students who are scheduled to begin repaying their federal student loans in one fiscal year and who default in that fiscal year or in either of the next two fiscal years, effectively extending the measurement period from two fiscal years to three fiscal years.  In addition, the current 25% threshold for losing certain Title IV eligibility based on three consecutive fiscal year CDRs will increase to 30% for three-year CDRs for fiscal year 2009 or later.  However, sanctions will not be imposed based on three-year CDRs under the 30% threshold until the DOE has issued three-year CDRs for the 2009, 2010, and 2011 fiscal years.  A school with a single three-year CDR for fiscal year 2011 or later that exceeds the 40% threshold in any single fiscal year is subject to loss of its eligibility to participate in certain Title IV programs.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
LINC $1.95 0.52%
AAPL $93.24 -0.41%
FB $117.81 -0.21%
GOOG $701.43 0.82%
TSLA $211.53 -4.96%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs