be in default

Discussion in 'English Only' started by landroni, Sep 6, 2007.

  1. landroni Member

    Hello everyone,

    I'm taking a practice test for the GMAT, and I came accross a strange use of "in default".

    "Graduate schools have begun to check whether applicants for admission are in default on government-guaranteed student loans." Later on, it continues with "[..] it is thought that the 3 percent of the applications that fail represent only three-quarters of the incoming applications from individuals in default. Consequently, approximately 1 percent of the applications that are processed are those of applicants in default [..]."

    I understand that the first default refers to people that benefit from the government loans. However, the second and third usages make me think that it actually refers to the students left out of the program. Does this in default mean "left out of the program" throught the entire passage?

    Could anyone spell more light on this?
  2. bibliolept

    bibliolept Senior Member

    Northern California
    AE, Español
    "Applicants who are in default" and "applicants in default" refers to those people who are applying, obviously, who have not paid back or are not paying back their student loans.
  3. landroni Member

    Thank you. Now it is clear
  4. Thomas Tompion Senior Member

    Southern England
    English - England
    To many of us this was the familiar use of default, and the computer use of the word to mean applied standard was initially strange.

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