low interest rate — why don more schools participate?
several reasons why a university might not want to participate in this program: + There is some risk-sharing by the schools. As a result, the program will be most attractive to schools with a low default rate. + The schools receive less than the full face value of the loans immediately, with the up-front amount depending on the school’s default rate and the interest rate. In effect, the schools are providing part of the loan capital. + There are no federal guidelines or regulations governing this loan program. + Membership is not open to two-year colleges. Universities that are interested in participating in the GATE loan program should call 1-800-895-GATE (4283) and ask to speak to Kevin Walker or Thatcher Fields.
