Student loans schemes are in operation in more than seventy countries around the world. Most loans schemes benefit from sizeable built-in government subsidies and, in addition, are subject to repayment default and administrative costs that are not passed on to student borrowers. We probe two issues in this paper, for 44 loans schemes in 39…

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)

This study analyzes the experience of existing higher education student loan programs in developing countries in order to understand their role in fostering cost recovery. Detailed financial analyses of 24 loan programs shows that present value of the repayments collected constitutes a small percentage of the loan value disbursed. In general,…