Graduation Formula

Adopted by the Indiana General Assembly in 2003, Indiana now uses what is called a “cohort rate,” which is recommended by various educational groups, including the Council of Chief State School Officers, the National Governors’ Association, and the National Center for Education Statistics. The new formula begins by establishing a cohort (or class) of first-time freshmen that expands and contracts as students transfer in and out of school during the years that follow.

The Class of 2006 is the first group of Hoosier students that could be followed using the state’s new formula for calculating graduation rates. The four years of data needed for the new rate first became available with the 2005-2006 school year, making Indiana among the first states in the nation to calculate graduation rates based on student-level information.

The new rate is lower because it is calculated based on the actual number of students who graduate (receive an Academic Honors, Core 40, or General Diploma after 3, 4, or more years) divided by the actual number of students who are expected to graduate.

Prior to the 2005-2006 graduation rate calculation, Indiana’s graduation rate was calculated using a formula that, at the time, was recommended by the National Center for Education Statistics. The old rate was not based on actual graduates, but instead used the number of students who dropped out in a given year.