The private lending sector has $8 billion in student

The private lending sector [S]
has [V] $8 billion in student loans
that [Relative pronoun refers back to loans] are in default or at such serious risk to default [Modifier]
-------------------------- IC
that [connector] -- [we must expect another IC]
it [private lending sector] [S] does not expect [V] payments when it is due [Should have been 'they are due'...as we are talking about payments (Plural)]
and [connector]
[Private lending sector] has consequently tightened credit standards for new student loans.
---We got an IC

Meaning:
The PLS (Private lending Sectors) has 8 billion in student loans.
The loans are at default or have high risk to default.
PLS is not expecting payments when they will become due and therefore PLS has tightened credit standards for new students taking loan.

--All good except for pronoun error.

A) that it does not expect payments when it is
--pronoun error

B) that payments will not be expected to be paid when
--Plug into the original statement:
The private lending sector has $8 billion in student loans that are in default or at such serious risk to default
-----------IC
that
payments will not be expected to be paid when due
and [payments] has consequently tightened credit standards for new student loans. ----Not making any sense

C) that it does not expect payments to be made when they are
--Plug into the original statement:
The private lending sector has $8 billion in student loans that are in default or at such serious risk to default
-----------IC
that it [private lending sector] does not expect payments to be made when they [payments] are due
and [private lending sector] has consequently tightened credit standards for new student loans.
-----------IC
--Makes sense

D) that payments are not expected to be paid when they are going to be
--Plug into the original statement:
The private lending sector has $8 billion in student loans that are in default or at such serious risk to default
-----------IC
that payments are not expected to be paid when they are going to be due
and [payments] has consequently tightened credit standards for new student loans.----Same problem as B
E) that they do not expect payments when it is
--Plug into the original statement:
The private lending sector has $8 billion in student loans that are in default or at such serious risk to default
-----------IC
that they [PLS] do not expect payments when it [payments] is due
and [payments] has consequently tightened credit standards for new student loans.
--Too many errors
---Wrong pronoun they for PLS
---Wrong pronoun it for payments
---Illogical subject 'payments' for 'has consequently tightened credit standards for new student loans'

IMO C

The private lending sector has $8 billion in student loans that are in default or at such serious risk to default that it does not expect payments when it is due and has consequently tightened credit standards for new student loans.



A) that it does not expect payments when it is Incorrect

pronoun error - payments plural, 'when it is' it is wrong

B) that payments will not be expected to be paid when Incorrect

after when there is no clause

C) that it does not expect payments to be made when they are Correct

D) that payments are not expected to be paid when they are going to be Incorrect

wordy

E) that they do not expect payments when it is Incorrect

pronoun error- The private lending sector singular
pronoun error - payments plural, 'when it is' it is wrong

The private lending sector(singular) has $8 billion in student loans (plural)that are in default or at such serious risk to default that it does not expect payments when it is due and has consequently tightened credit standards for new student loans.

clue 1 -and has = this refers that there are two things which PVT sector has suffered/ observed and the word consequently shows further step in action so we need a cause ..these two needs to be ll .
follow SVA rules and you will sail through.


A) that it does not expect payments when it is

B) that payments will not be expected to be paid when - this isn't in ll with our rethinking.

C) that it (pvt sector) does not expect payments to be made when they(payments) are

D) that payments are not expected to be paid when they( ....?..) are going to be -SVA error

E) that they do not expect payments when it is - sva error

IMO C

The official explanation is here.

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