Report Finds Slight Rise in US Charter School Default Rate

U.S. charter schools are defaulting on bonds at a rate of 3.3 percent.
According to a report made available Tuesday, the percent is a level higher than the previously recorded figure from three years ago.
Charter schools, held in a number of municipal bond funds, are public schools that operate independent from school districts.
They are publicly funded but use private-sector lenders to fund buildings.
The reported stated the uptick in defaults is mainly due to a failure of the school to renew charter dues for poor academic performance.
The study did find some state programs were improving charter schools' access to the bond market.
State officials in Colorado, Utah and Texas are developing programs to allow charter operators to get enhanced credit ratings.