BA have said that they will act as guarantor for the borrowings, if a candidate wishes to pursue this particular financing route.
No they haven't. What they have said is that (and note the bold emphasis.)
If you’re not in a position to secure an asset-based loan then you could be eligible for our British Airways guaranteed loan scheme. If this is the case, our partner bank will run a thorough check of your credit history. Should this come back clear and you pass the Future Pilot Programme selection process, British Airways could act as your loan guarantor.
The word "
could" is quite distinct from the word "
will" and has been used carefully.
He defaults on his loan repayments and, as guarantor, British Airways are liable for the debt. Am I right?
This is exactly what I was wondering...? I would say yes as they have secured the loan.
This simply means that the primary lender (the bank) has its paper underwritten by the BA guaranteed loan scheme. It doesn't absolve you from the debt, nor does it prevent recovery of the debt by either the primary lender or the guarantor. Wondering is futile. It requires a thorough reading and understanding of the terms of the contract.