A good loan scheme must balance costs with coverage. If loans are too expensive then people will not borrow. Governments are not banks, but they provide or support loans for many things, including education and training. Governments too need to get the balance right. Cedefop surveyed 35 education and training loan schemes in Europe, examining their design and performance. Although there is no ideal scheme, interesting features emerge that provide guidelines as to what makes a good education and training loan scheme. It appears that a successful education and training loan scheme needs to be flexible and simple, as well as attractive and well targeted. A scheme's success will be influenced by national contexts including administrative capacities and the sophistication and willingness of financial institutions. They need to be supported by good communication and guidance policies for potential borrowers and should be closely monitored and evaluated. Analysis of the survey shows that countries have tried several approaches to balance costs and coverage. While there is no single ideal model for education and training loans, it is possible to identify some core "good practice" principles for designing and implementing them. (Contains 1 box, 2 tables and 2 footnotes.)