Perceptions of Texas student financial aid directors regarding cohort default rate calculation methodology

The major purpose of this research was to investigate the appropriateness of current cohort default rate calculations by the U.S. Department of Education as perceived by Student Financial Aid Directors in Texas. A secondary purpose was to determine if an alternative cohort default rate calculation methodology, using weighted average of dollars defaulted combined with the current rate using the number of defaulters, would provide a more appropriate assessment of both program integrity and related cost for the American taxpayer as perceived by Student Financial Aid Directors in Texas.; The population of this study included 224 Financial Aid Directors in Texas institutions of higher education that participate in the federal student loan program as identified by the Texas Guarantee Student Loan Corporation. A survey instrument, developed by the researcher to assess Student Financial Aid Directors' perceptions, was sent to the entire population. This research study is based on 114 survey respondents from the state of Texas. Data collection on perceptions of Student Financial Aid Directors included demographic information, responses to seven statements, and comments provided by respondents. Descriptive and inferential statistics were used for analysis of data collected from the survey instrument.; The study confirmed that Student Financial Aid Directors in Texas agree that a new cohort default rate calculation methodology that includes dollars defaulted would provide a more appropriate representation of lost revenue for taxpayers. While the results of this study do not support significant variability of responses among institution types Student Financial Aid Directors collectively are in agreement that an adjusted cohort default rate that includes defaulted dollars in its' calculation, would be more representative of lost revenue for taxpayers.