Student Loans as a Means of Financing Higher Education: Lessons from International Experience. World Bank Staff Working Papers Number 599.

International experience with student loans as a means of financing higher education is examined, with particular reference to developing countries. After summarizing the main purposes and kinds of student loan programs and practices in developed countries, advantages and disadvantages of loans as a means of financing higher education are identified. Specific attention is directed to Latin America and the Caribbean, including the scale of student loan programs, administration of educational credit institutions, the financing of student loans, repayment terms, the cost of administering student loans, and default on student loans. Additionally, student loan programs in Asia, the Middle East, Ghana, and other African countries are addressed. Loan programs in developing countries are also evaluated in terms of feasibility, as a means of cost recovery, flexibility, efficiency, equity, manpower, and administration. The roles of the U.S. Agency for International Development, the Inter-American Development Bank, and the World Bank in funding student loan institutions are examined. Finally, the choice between student loans and other methods of financing higher education is addressed, and policy options for student loan programs are summarized. Information on educational credit institutions in Latin America and a bibliography are appended. (SW)