Fact Sheet | April 24, 2015

Risk Sharing: A Proposal to Improve Institutional Accountability and Reward Colleges Using a Student Default Risk Indicator (SDRI)

The federal government should tie colleges’ eligibility for federal aid more closely to the level of risk those institutions present to students and taxpayers, and provide rewards for colleges where risks are low. To achieve this, we recommend using a new measure called the Student Default Risk Indicator (SDRI).