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4Information ItemCalifornia Student Aid CommissionPresentation on certified three-year cohort default rates on student loanspursuant to Chapter 7, Statutes of 2011 (SB 70) for academic year 2012-13Recently enacted law barred Cal Grant institutions from using Cal Grants from newstudents if their certified three-year cohort default rates (CDR) exceed a specifiedpercentage.Tab 4.a lists the institutions barred in 2012-13 because they exceed the current 30%statutory limit. Tab 4.b lists institutions that continue to be barred in 2012-13 becausethey exceeded the 2011-12 statutory limit of 24.6%. They may potentially regain theireligibility for 2013-14 if their CDRs to be certified next October do not exceed the current30% statutory limit.The table below displays the CDR status of the Cal Grant participating institutions bysegment for academic years 2011-12 and 2012-13.SegmentSpecified Cohort Default Rate1TotalInstitutionsEligibleNot EligibleAt or below 24.6113102311198355Above 24.6At or below 24.6Above 30.0Not eligible butmay be in 2013-1422011-12California Community CollegesUniversity of CaliforniaCalifornia State UniversityIndependent Colleges and UniversitiesPrivate Career CollegesTotal2012-13California Community CollegesUniversity of CaliforniaCalifornia State UniversityIndependent Colleges and UniversitiesPrivate Career 11231129835996776Above 24.6 and ator below 30.04242Source: U.S. Department of Education's Revised (April 2011) FY2008 Cohort Default Rate list.Institutions may regain eligibility for new and renewal Cal Grant awards for the 2013-14 academic yearprovided all other requirements are met.California Student Aid Commission Meeting1November 17-18, 201192534
Unlike California, the United States Department of Education (USED) will not begin usingthree-year cohort default rates until the 2013-14 academic year. However, USED’s mostrecent two-year national student loan cohort default rate rose to 8.8 percent, up from 7.0percent in fiscal year 2008. The cohort default rates increased for all sectors:o from 6.0 percent to 7.2 percent for public institutions,o from 4.0 percent to 4.6 percent for private institutions, ando from 11.6 percent to 15 percent at for-profit schools.These rising default rates, combined with the following national trends, suggest potentialcause of concern for California students:1) Consumer borrowing, a significant portion of which is student loans, has increasedsignificantly, unlike previous recessions. The following chart from the FederalReserve Bank of Saint Louis shows the trend in total government consumer loans,including student loans. The increase in consumer borrowing after the recentrecession is unprecedented when compared to other recessions.2) Private loans for education are increasing. According to the latest informationfrom USED, private loan borrowing increased from 5% of undergraduates in 20032004, to 14% in 2007-08. More than half of dependent undergraduates whoobtained private loans had borrowed the maximum federal loan amount in 2007–08. 11U.S. Department of Education, National Center for Education Statistics (October 2011). Stats inBrief (NCES2012-184) p. 3.California Student Aid Commission Meeting2November 17-18, 2011
3) While a college degree provides an employment advantage over those with lesseducation, earnings of college graduates have been declining, a trend thatextends over a number of years, not just as a result of the recent recession. Realearnings for young male college graduates are down 19% since their peak in2000, and real earnings for young female college graduates are down 16% sincetheir peak in 2003.California Student Aid Commission Meeting3November 17-18, 2011
The Project on Student Debt’s recent report, “Student Debt and the Class of 2010,” hasidentified California as a relatively low-debt state, with average debt of 18,113 for the48% of the Class of 2010 graduating with debt from public and private nonprofitinstitutions. 2 Even so, California data related to the report indicates that the percentageof UC students from the Class of 2010 who graduated with debt ranges from a low of41% at UC Berkeley to a high of 64% at UC Riverside; at CSU, from those campusesreporting the data, the percentage ranges from a low of 35% at Cal Poly – Pomona to ahigh of 72% at CSU Bakersfield; at private nonprofit 4-year institutions, from thoseinstitutions reporting the data, the percentage ranges from a low of 25% to 100%. 3The report does not include private for-profit institutions, and thus provides only a partialpicture of debt for the California Class of 2010, because few private for-profit institutionsreported the relevant debt data to the organization from which The Project on StudentDebt obtained its data.Students who are currently borrowing for higher education will be affected by thecontinuing hard economic times, the effects lingering even after the hard times end, theincreases in tuition and fees at public and private institutions, and the challenges ofgetting jobs after graduation and repaying their debt.We anticipate presenting future recommendations to the Commission to explore theseissues and the effects on financial aid in California, and to use existing Commissionauthority to collect relevant data from all institutions participating in the Cal GrantProgram.Responsible Person(s): Ed EmersonChief, Federal Policy & Programs Division2The Project on Student Debt, November 2011, Student Debt and the Class of 2010, pp. sof2010.pdf3http://projectonstudentdebt.org/state by state-view2011.php?area CACalifornia Student Aid Commission Meeting4November 17-18, 2011
Tab 4.aCal Grant InstitutionsAffected by Senate Bill 70 Cohort Default Rate Requirements 2012-13Cal Grant Eligible Schools with Over 40% Federal Student Loan Borrowers andFY2008 Three-Year Cohort Default Rates 1 Equal to or Over 30.0(Not Cal Grant Eligible for 2012-13)SCHOOLCODE 040255930102559303025593050128730000719000SCHOOL (CSAC)20082008% of FederalTrial 3-YearStudentCohortLoanDefault Rate1BorrowersTYPE & CONTROLADVANCED COLLEGECALIFORNIA COLLEGE SAN DIEGOCHARTER COLLEGE-CANYON COUNTRYCHARTER COLLEGE-LANCASTERCHARTER COLLEGE-LONG BEACHEVEREST COLLEGE- ALHAMBRAEVEREST COLLEGE -SAN BERNARDINOEVEREST COLL - CITY OF INDUSTRYEVEREST COLLEGE ONTARIOEVEREST COLLEGE - ONTARIO METROEVEREST COLLEGE TORRANCEEVEREST COLLEGE WEST L AEVEREST COLLEGE -ANAHEIMEVEREST COLLEGE -GARDENAEVEREST COLLEGE -HAYWARDEVEREST COLLEGE -RESEDAEVEREST COLLEGE, LOS ANGELESEVEREST COLLEGE-SAN JOSEEVEREST COLL-SAN FRANCISCOFOUR-D COLLEGE 2INSTITUTE FOR BUSINESS AND TECH (SANTA CLARA)INST FOR BUSINESS AND TECHNOLOGY (RANCHO CORDOVA) 3INST OF TECHNOLOGY MODESTOINST OF TECHNOLOGY ROSEVILLEINSTITUTE OF TECHNOLOGY (CLOVIS)INSTITUTE OF TECHNOLOGY-REDDINGINSTITUTE OF TECHNOLOGY-STOCKTONITT TECHNICAL INST TORRANCENEWBRIDGE COLLEGE-SAN DIEGO 4SANTA BARBARA BUS COLL-SANTA BARSANTA BARBARA BUS COLL-VENTURASO CAL INSTITUTE OF TECHNOLOGYUNITED EDUCATION INST (HUNTINGTON PARK)UNITED EDUCATION INST-ANAHEIMUNITED EDUCATION INST-CHULA VISTUNITED EDUCATION INST-EL MONTEUNITED EDUCATION INST-ONTARIOUNITED EDUCATION INST-SAN BERNUNITED EDUCATION INST-SAN DIEGOUNITED EDUCATION INST-VAN NUYSWYOTECH LONG BEACHWYOTECH- FREMONTPROPRIETARY 2 TO 3 YEARSPROPRIETARY 4 YEARS OR MOREPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 4 YEARS OR MOREPROPRIETARY LESS THAN 2 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY LESS THAN 2 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY LESS THAN 2 YEARSPROPRIETARY LESS THAN 2 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 4 YEARS OR MOREPROPRIETARY LESS THAN 2 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 4 YEARS OR MOREPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARS1Based on U.S. Department of Education Revised FY2008 3-Year Cohort Default Rates list, posted April 21, 2011.2Four-D College has sites in Colton and Victorville.3Inst for Business and Technology was formerly National Career Education.4Newbridge College-San Diego was formerly Valley Career r 1, 2011California Student Aid Commission Meeting1November 17-18, 2011
Tab 4.bCal Grant InstitutionsAffected by Senate Bill 70 Cohort Default Rate Requirements in 2011-12and First Year Satisfying Requirements in 2012-13Cal Grant Eligible Schools with Over 40% Federal Student Loan Borrowers andFY2008 Three-Year Cohort Default Rates 1 Equal to or Over 24.6 and Below 30.0(Not Cal Grant Eligible for 2012-13 but May Be for 2013-14) 2SchoolCodeSCHOOL 790102577900025780000307270012345678CALIFORNIA CHRISTIAN COLLEGECARRINGTON COLLEGE ANTIOCH 3CARRINGTON COLLEGE CITRUS HTS 3CARRINGTON COLLEGE EMERYVILLE 3CARRINGTON COLLEGE PLEAS HILL 3CARRINGTON COLLEGE SACRAMENTO 3CARRINGTON COLLEGE SAN JOSE 3CARRINGTON COLLEGE SAN LEANDRO 3CARRINGTON COLLEGE STOCKTON 3CNTR FOR EMPL TRNG-SAN DIEGOCNTR FOR EMPL TRNING-GILROYCNTR FOR EMPL TRNING-OXNARDCNTR FOR EMPL TRNING-RIVERSIDECNTR FOR EMPL TRNING-SACRAMENTOCNTR FOR EMPL TRNING-SANTA MARIACNTR FOR EMPLOY TRNG-SAN JOSEEMPIRE COLLEGEGLENDALE CAREER COLLEGEHEALD COLLEGE - FRESNOHEALD COLLEGE STOCKTONITT TECHNICAL INST SACRAMENTO 4ITT TECHNICAL INST SAN BERN 5KAPLAN COLLEGE PANORAMA CITYKAPLAN COLLEGE SACRAMENTOKAPLAN COLLEGE STOCKTONKAPLAN COLLEGE - BAKERSFIELDLA COLLEGE INTERNATIONALPATTEN UNIVERSITY 6PLATT COLLEGE ALHAMBRA 7PLATT COLLEGE ONTARIOSANTA BARB BUS COLL-RANCHO MIRAGE 8SANTA BARBARA BUS COLL BKSFLDSANTA BARBARA BUS COLL SANTA MARWESTWOOD COLL OF TECH LATYPEPRIVATE 4 YEARS OR MOREPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPRIVATE LESS THAN 2 YEARSPRIVATE LESS THAN 2 YEARSPRIVATE LESS THAN 2 YEARSPRIVATE LESS THAN 2 YEARSPRIVATE LESS THAN 2 YEARSPRIVATE LESS THAN 2 YEARSPRIVATE LESS THAN 2 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 4 YEARS OR MOREPROPRIETARY 4 YEARS OR MOREPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 4 YEARS OR MOREPRIVATE 4 YEARS OR MOREPROPRIETARY 4 YEARS OR MOREPROPRIETARY 4 YEARS OR MOREPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 2 TO 3 YEARSPROPRIETARY 4 YEARS OR MORE20082008Trial 3-Year% of FederalStudent Loan Cohort .1928.9226.1425.4125.4128.2828.2824.8327.64Based on U.S. Department of Education Revised FY2008 3-Year Cohort Default Rates list, posted April 21, 2011.In accordance with California Education Code Section 69432.7(l)(3)(D)(i), these institutions may regain eligibility toprovide initial and full renewal Cal Grant awards in the 2013-14 academic year if they satisfy the CDR threshold andall other requirements for the 2013-14 academic year.Carrington College was formerly Western Career College.ITT Technical Inst Sacramento includes the site in Clovis.ITT Technical Inst San Bern includes sites in Concord, Corona and Oakland.Patten University was formerly Patten College.Platt College Alhambra was formerly Platt College of Los Angeles.Santa Barb Bus Coll-Rancho Mirage was formerly Santa Barb Bus Coll-Palm Desert.October 1, 2011California Student Aid Commission Meeting1November 17-18, 2011
02250602 everest college - ontario metro proprietary 4 years or more: 88% 40.47: 03195400 everest college torrance proprietary less than 2 years: 69% 34.78: 01287301 everest college west l a proprietary 2 to 3 years: 72% 40.66: 01110700 everest college -anaheim proprietary 2 to 3 years: 73% 30.40: 01112300 everest college -gardena proprietary 2 .
