This article describes the operation of the student loan program in Nigeria, including its past problems and current attempts of the Nigerian Students Loans Board to improve efficiency of loan collection. It proposes the establishment of a new Education Bank to finance student loans and other forms of investment in higher education. (Author/DB)

This article reviews student loan programs around the world; notes the problem of financial inefficiency, particularly in developing nations; discusses strategies to improve loan program performance, such as program targeting and avoidance of hidden subsidies; and considers alternatives to student loans based on principles of deferred payment. (DB)