How does a schools change in status affect the schools cohort default rate?
A. A school involved in a merger, acquisition or other change in status should be aware that the change may affect the application and calculation of its cohort default rates and that certain sanctions may be applicable to the school after the change in status. After a change in status, cohort default rates are applied to a school according to the type of change in status. See Figure 2.5.1 in the Guide, “Change in Status and Evasion.” Also refer to the Federal Register, Vol. 65, No.