Those with a high level of education are defaulting on loan repayment more than those with a lower level of education. This means that contrary to the expectations that those with a high level of education are earning more and may not default on loan repayment is a wrong assertion. The ratio of loan default for the customers with A level to postgraduate and those who lack formal education to GCSE is 3: 4. Therefore, education becomes a critical factor in deciding on those the bank should go ahead and award loans with those who have less education qualifying more than those who have high levels of education.
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