Not exact matches
It sounds as if the private teacher preparation system in Texas comes very close to the scandalous and very expensive (to students, parents, and the federal government - through very high
default rates on guaranteed student
loans) «private college» system which is
currently being forced to clean up its act.
One big catalyst for this problem is the
rate of
default which is
currently around 12 % of Federal student
loans.
The rising delinquency (11 %
currently) and lifetime
default rates are all the more disturbing given that federal student
loan rules, in theory, permit all borrowers to repay based on a percentage of their income.
If you doubt this, consider the high
currently expected
rate of
default on FHA
loans originated over the last two years.
The method FHA
currently uses to control its losses, which is to blackball lenders whose
loan submissions have high
default rates, is clumsy and only partly effective.