News Why Hidden Delinquencies Are a Growing Threat to Your Institution – And What You Can Do About It If your Cohort Default Rate (CDR) looks low, you might assume your institution is in the clear. But the numbers tell a different story. Over 30% of borrowers are currently not making payments – and many have no plans to start. That means thousands of students are at risk of falling into delinquency, and your institution may be more vulnerable to rising default rates than you realize. While a low CDR might provide temporary reassurance, it doesn’t reflect the real-time repayment struggles many students face today. To truly understand the financial impact on your institution, you must monitor your delinquency rate – not just your CDR. What’s at Stake? A rising CDR isn’t just a number; it comes with serious financial and operational consequences for your institution: 15%+ CDR – Triggers multiple federal aid disbursements, increasing administrative burdens and complicating financial aid processing. 30%+ CDR for three years – Puts Pell Grant and Direct Loan eligibility at risk, threatening funding for your students. 40%+ CDR for even one year – Leads to immediate sanctions that could impact future enrollment and institutional reputation. Without proactive intervention, delinquency rates will continue to rise, placing schools at greater risk of long-term financial consequences. Institutions must move beyond using CDR as a lagging indicator and instead adopt real-time tracking to identify and assist at-risk borrowers before defaults occur. Gain Visibility, Take Action The good news? You can start tracking now! Inceptia’s free, no contract required, delinquency tracking service provides secure, real-time insights into borrower repayment trends, empowering your institution to stay ahead of default risks. By leveraging NSLDS School Portfolio data, this service enables you to: Pinpoint your school’s true delinquency rate – not just your official CDR. Spot trends and risk factors before they impact your institution’s financial aid eligibility. Take strategic action to prevent defaults and safeguard your funding streams. Securely retrieve and analyze delinquency data to gain a clear picture of borrower repayment behavior. Assess your delinquency rate free of charge, with no risk or obligation. Don’t Wait for the Numbers to Catch Up The stakes are too high to rely on outdated data. CDRs lag behind reality, meaning by the time defaults appear on your record, it’s too late to take preventive action. With proactive delinquency tracking, your institution can take control now – before rising defaults jeopardize your funding and your students’ financial futures. Beyond Tracking: Comprehensive Support for Schools Delinquency tracking is just one piece of the puzzle. Inceptia offers comprehensive solutions to help schools not only monitor delinquency rates but actively reduce default risk. From student loan repayment wellness programs to one-on-one borrower outreach, our tools empower schools to: Educate and support borrowers on repayment options Improve student financial literacy and repayment success Maintain compliance and protect institutional funding Proactivity is key. The earlier you intervene; the sooner you can help a struggling borrower and the stronger your school’s financial future will be. Click here to start tracking now or for more information on Inceptia services, send us a message at TalkToUs@inceptia.org.