FlexiStudy is a new type of correspondence course developed by the National Extension College, which has become a center for the production and distribution of distance learning materials, while local colleges take the responsibility for teaching, counseling, and administration. (EAO)

This report examines the extent to which correspondence schools participate in the Stafford Student Load Program and the rates at which students from these schools default on their student loans. It is revealed that the average borrower default rate for students attending correspondence schools was more than double the rate, 42.2 percent versus…