Deferred cost recovery for higher education: student loan programs in developing countries

Analyzes the experience of existing loan programs, particularly in developing countries, to understand their role in fostering cost recovery. It first estimates coverage, repayment format, administering institutions, loan value, and students covered. It then examines ways to improve cost recovery, such as targeting loans to specific groups, reducing subsidies while limiting the debt burden, and minimizing repayment evasion. The authors argue that without financial institutions or effective taxation mechanisms, loan programs and alternative taxes may not be feasible. As effective alternatives, they examine national service programs, differential fees, targeted scholarships, and community service programs. -from Authors