"Federal Consolidation Loans and Federal Direct Consolidation Loans are not counted
directly in the cohort default rate calculation. However, the status of a
consolidation loan may affect how the loan(s) that was paid off by the consolidation
loan is included in the cohort default rate calculation."
If all of a borrower's underlying loans were included in your school's cohort default
rate calculation before they were consolidated, the status of the consolidation loan
has no effect on your subsequent cohort default rate calculations. However, if an
underlying loan was not included in your cohort default rate calculation before it was
consolidated, the consolidation loan's default may cause that underlying loan to be
counted as defaulted when it is included in your cohort default rate.
Please see the
Cohort Default Rate Guide for complete details and information on consolidation
and cohort default rates.