Chile's State-Guaranteed Student Loan Program : Analysis and Evaluation
Chile's Programa de Credito con Aval del Estado (CAE in its Spanish acronym) is uniquely positioned to help hundreds of thousands of qualified-but-financially-needy Chileans attend and finish tertiary education. The CAE program was designed to...
| Main Author: | |
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| Format: | Other Education Study |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2011/03/16406290/chiles-state-guaranteed-student-loan-program-cae http://hdl.handle.net/10986/12954 |
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okr-10986-12954 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACADEMIC PERFORMANCE ACADEMIC YEAR ACADEMICALLY QUALIFIED STUDENTS ACCESS TO FINANCING ACCESS TO TERTIARY EDUCATION ACCESSIBILITY ACCOUNTING ADMINISTRATIVE COSTS ALTERNATIVE SOURCES OF FINANCING AMOUNT OF CREDIT ANNUAL PAYMENTS ASSETS AUCTION AUCTION PROCEDURES AUCTION TECHNIQUES AUCTIONS AVERAGE DEBT BANK POLICY BANKS BASIS POINT BASIS POINTS BENEFICIARY BID BIDS BONDS BORROWER BORROWING BORROWING CAPACITY CAPITAL COSTS CAPITAL MARKETS CAPITAL REQUIREMENTS CAREERS CASH FLOW CASH FLOW ANALYSIS CASH FLOWS CASH ON HAND CASH OUTFLOWS CASH TRANSFER CENTRAL BANK COLLECTION EFFORTS COLLECTION PROCESS CONTINGENT LIABILITIES CONVENTIONAL MORTGAGE CREDIT BUREAU CREDITS DEBT BURDEN DEBT BURDENS DEBT LEVELS DEBT PAYMENT DEBT PAYMENTS DEBT REPAYMENT DEBT SERVICE DEBT SERVICE RATIO DEBTS DEFAULT RATES DEFAULTERS DEFAULTS DEGREE PROGRAMS DEGREES DEPENDENT DEVELOPING COUNTRY DEVELOPMENT CORPORATION DISBURSEMENT DISBURSEMENTS DISCOUNT RATE DIVERSIFIED PORTFOLIO DROPOUT RATES EARNINGS ECONOMICS OF EDUCATION ECONOMIES OF SCALE EDUCATION LOAN EDUCATION SECTOR EDUCATION STUDENTS EDUCATIONAL BACKGROUNDS EDUCATIONAL LOANS ELIGIBILITY CRITERIA EMPLOYEE EMPLOYER EMPLOYERS EMPLOYMENT ENROLMENT RATES ENROLMENT SHARE EQUAL TREATMENT EXCESSIVE DEBT FACE VALUE FAMILIES FAMILY INCOME FINANCIAL ASSISTANCE FINANCIAL DIFFICULTY FINANCIAL NEED FINANCIAL NEEDS FINANCIAL OBLIGATIONS FINANCIAL SYSTEM FISCAL RESOURCES FIXED INTEREST FIXED INTEREST RATES GLOBAL DEBT GOVERNMENT GUARANTEES GRACE PERIOD GRADUATION RATES GRANT PROGRAMS GROSS DOMESTIC PRODUCT GROSS TERTIARY ENROLLMENT GUARANTY HIDDEN SUBSIDY HIGH DEBT SERVICE RATIOS HIGHER EDUCATION HUMAN CAPITAL HUMAN RIGHTS INCOME GROUP INDIGENOUS SCHOLARSHIP INDIVIDUAL LOAN INFLATION INFORMATION SYSTEM INFORMATION SYSTEMS INSOLVENCY INSTITUTIONAL ARRANGEMENT INSTRUMENT INSURANCE INSURANCE POLICY INTANGIBLE INTEREST RATE INTEREST RATES INTERNATIONAL STANDARDS INVESTMENT FUNDS JUDGE JUDGMENTS LABOR MARKET LEARNING LEARNING OUTCOMES LEGAL ACTIONS LEGAL FRAMEWORK LEGAL PROCEDURES LENDERS LEVERAGE LEVERAGES LIQUIDITY LOAN AMOUNT LOAN AMOUNTS LOAN BALANCE LOAN BALANCES LOAN DOCUMENTATION LOAN GUARANTEES LOAN PAYMENTS LOAN PORTFOLIO LOAN PORTFOLIOS LOAN PRINCIPAL LOAN PRODUCT LOAN PRODUCTS LOAN RECOVERY LOAN REPAYMENT LOAN REPAYMENT RATES LOAN REPAYMENTS LOAN SERVICING LOAN SIZE MANDATE MINIMUM WAGE MINISTRY OF EDUCATION MORTGAGE NATIONAL ACCREDITATION NEEDY STUDENTS NEGOTIATIONS OPPORTUNITY COST PAR VALUE PENSION PENSIONS PREPAYMENT PRIVATE BANKS PRIVATE CREDIT PRIVATE CREDIT BUREAU PRIVATE UNIVERSITIES PROFESSIONAL DEGREE PUBLIC FINANCE PUBLIC POLICY PUBLIC SUBSIDIES RATE OF RETURN RATES OF RETURN REAL INTEREST REAL INTEREST RATE REMAINING DEBT REPAYMENT REPAYMENT BEHAVIOR REPAYMENT OBLIGATION REPAYMENT PERIOD REPAYMENT PERIODS REPAYMENT RATE REPAYMENT RATES REPAYMENTS RESEARCHERS RESERVES RISK-FREE RATE SAVINGS SCHOLARSHIP PROGRAMS SCHOLARSHIPS SECOND LOAN STATE GUARANTEE STATE GUARANTEES STUDENT AID STUDENT ASSISTANCE STUDENT DEBT STUDENT FINANCIAL AID STUDENT LOAN STUDENT LOAN BENEFICIARIES STUDENT LOAN PROGRAM STUDENT LOAN PROGRAMS STUDENT LOANS SUBSIDIZATION T-BILLS TAX TAX RETURNS TEACHERS TEI TERTIARY EDUCATION TERTIARY EDUCATION INSTITUTION TERTIARY EDUCATION INSTITUTIONS TERTIARY EDUCATION SYSTEM TERTIARY ENROLLMENT RATE TERTIARY INSTITUTIONS TOTAL DEBT TRANCHE TRANCHES TRANSFER PAYMENT TRANSPARENCY TUITION UNDERGRADUATE DEGREE PROGRAM UNDERGRADUATES UNEMPLOYMENT UNIVERSITIES UNIVERSITY DEGREE UNIVERSITY ENTRANCE UNIVERSITY STUDENTS VETERINARY MEDICINE WRITTEN COMMUNICATIONS |
| spellingShingle |
ACADEMIC PERFORMANCE ACADEMIC YEAR ACADEMICALLY QUALIFIED STUDENTS ACCESS TO FINANCING ACCESS TO TERTIARY EDUCATION ACCESSIBILITY ACCOUNTING ADMINISTRATIVE COSTS ALTERNATIVE SOURCES OF FINANCING AMOUNT OF CREDIT ANNUAL PAYMENTS ASSETS AUCTION AUCTION PROCEDURES AUCTION TECHNIQUES AUCTIONS AVERAGE DEBT BANK POLICY BANKS BASIS POINT BASIS POINTS BENEFICIARY BID BIDS BONDS BORROWER BORROWING BORROWING CAPACITY CAPITAL COSTS CAPITAL MARKETS CAPITAL REQUIREMENTS CAREERS CASH FLOW CASH FLOW ANALYSIS CASH FLOWS CASH ON HAND CASH OUTFLOWS CASH TRANSFER CENTRAL BANK COLLECTION EFFORTS COLLECTION PROCESS CONTINGENT LIABILITIES CONVENTIONAL MORTGAGE CREDIT BUREAU CREDITS DEBT BURDEN DEBT BURDENS DEBT LEVELS DEBT PAYMENT DEBT PAYMENTS DEBT REPAYMENT DEBT SERVICE DEBT SERVICE RATIO DEBTS DEFAULT RATES DEFAULTERS DEFAULTS DEGREE PROGRAMS DEGREES DEPENDENT DEVELOPING COUNTRY DEVELOPMENT CORPORATION DISBURSEMENT DISBURSEMENTS DISCOUNT RATE DIVERSIFIED PORTFOLIO DROPOUT RATES EARNINGS ECONOMICS OF EDUCATION ECONOMIES OF SCALE EDUCATION LOAN EDUCATION SECTOR EDUCATION STUDENTS EDUCATIONAL BACKGROUNDS EDUCATIONAL LOANS ELIGIBILITY CRITERIA EMPLOYEE EMPLOYER EMPLOYERS EMPLOYMENT ENROLMENT RATES ENROLMENT SHARE EQUAL TREATMENT EXCESSIVE DEBT FACE VALUE FAMILIES FAMILY INCOME FINANCIAL ASSISTANCE FINANCIAL DIFFICULTY FINANCIAL NEED FINANCIAL NEEDS FINANCIAL OBLIGATIONS FINANCIAL SYSTEM FISCAL RESOURCES FIXED INTEREST FIXED INTEREST RATES GLOBAL DEBT GOVERNMENT GUARANTEES GRACE PERIOD GRADUATION RATES GRANT PROGRAMS GROSS DOMESTIC PRODUCT GROSS TERTIARY ENROLLMENT GUARANTY HIDDEN SUBSIDY HIGH DEBT SERVICE RATIOS HIGHER EDUCATION HUMAN CAPITAL HUMAN RIGHTS INCOME GROUP INDIGENOUS SCHOLARSHIP INDIVIDUAL LOAN INFLATION INFORMATION SYSTEM INFORMATION SYSTEMS INSOLVENCY INSTITUTIONAL ARRANGEMENT INSTRUMENT INSURANCE INSURANCE POLICY INTANGIBLE INTEREST RATE INTEREST RATES INTERNATIONAL STANDARDS INVESTMENT FUNDS JUDGE JUDGMENTS LABOR MARKET LEARNING LEARNING OUTCOMES LEGAL ACTIONS LEGAL FRAMEWORK LEGAL PROCEDURES LENDERS LEVERAGE LEVERAGES LIQUIDITY LOAN AMOUNT LOAN AMOUNTS LOAN BALANCE LOAN BALANCES LOAN DOCUMENTATION LOAN GUARANTEES LOAN PAYMENTS LOAN PORTFOLIO LOAN PORTFOLIOS LOAN PRINCIPAL LOAN PRODUCT LOAN PRODUCTS LOAN RECOVERY LOAN REPAYMENT LOAN REPAYMENT RATES LOAN REPAYMENTS LOAN SERVICING LOAN SIZE MANDATE MINIMUM WAGE MINISTRY OF EDUCATION MORTGAGE NATIONAL ACCREDITATION NEEDY STUDENTS NEGOTIATIONS OPPORTUNITY COST PAR VALUE PENSION PENSIONS PREPAYMENT PRIVATE BANKS PRIVATE CREDIT PRIVATE CREDIT BUREAU PRIVATE UNIVERSITIES PROFESSIONAL DEGREE PUBLIC FINANCE PUBLIC POLICY PUBLIC SUBSIDIES RATE OF RETURN RATES OF RETURN REAL INTEREST REAL INTEREST RATE REMAINING DEBT REPAYMENT REPAYMENT BEHAVIOR REPAYMENT OBLIGATION REPAYMENT PERIOD REPAYMENT PERIODS REPAYMENT RATE REPAYMENT RATES REPAYMENTS RESEARCHERS RESERVES RISK-FREE RATE SAVINGS SCHOLARSHIP PROGRAMS SCHOLARSHIPS SECOND LOAN STATE GUARANTEE STATE GUARANTEES STUDENT AID STUDENT ASSISTANCE STUDENT DEBT STUDENT FINANCIAL AID STUDENT LOAN STUDENT LOAN BENEFICIARIES STUDENT LOAN PROGRAM STUDENT LOAN PROGRAMS STUDENT LOANS SUBSIDIZATION T-BILLS TAX TAX RETURNS TEACHERS TEI TERTIARY EDUCATION TERTIARY EDUCATION INSTITUTION TERTIARY EDUCATION INSTITUTIONS TERTIARY EDUCATION SYSTEM TERTIARY ENROLLMENT RATE TERTIARY INSTITUTIONS TOTAL DEBT TRANCHE TRANCHES TRANSFER PAYMENT TRANSPARENCY TUITION UNDERGRADUATE DEGREE PROGRAM UNDERGRADUATES UNEMPLOYMENT UNIVERSITIES UNIVERSITY DEGREE UNIVERSITY ENTRANCE UNIVERSITY STUDENTS VETERINARY MEDICINE WRITTEN COMMUNICATIONS World Bank Chile's State-Guaranteed Student Loan Program : Analysis and Evaluation |
| geographic_facet |
Latin America & Caribbean Chile |
| description |
Chile's Programa de Credito con
Aval del Estado (CAE in its Spanish acronym) is uniquely
positioned to help hundreds of thousands of
qualified-but-financially-needy Chileans attend and finish
tertiary education. The CAE program was designed to improve
access to and equity in tertiary education. In 2010, after
only four years of operation, the Program had 216,000 active
borrowers or 23 percent of the 940,000 students in
pre-grado. Even as the annual number of new beneficiaries
levels off, the portfolio will increase for the next several
years until reaching a steady state with approximately
460,000 active borrowers by 2016. This report is part of the
2010 Joint Studies Program between the Government of Chile
and the World Bank. The purpose of the study is three-fold.
First, to evaluate the impact of this program on access to
and equity in higher education, taking into account the
effectiveness of targeting qualified but financially needy
students and its complementarities with other major student
aid mechanisms. Second, to understand the size of the
economic commitment the Chilean Government has made with
this program, both in terms of its investment to date and
its contingent liabilities. Third, to formulate
recommendations for improvements going forward. The first
chapter summarizes CAE's legal framework and
institutional arrangement, explains how the CAE system
functions, and describes the main characteristics of the
loan product. The second chapter presents a brief overview
of CAE's structural cost according to current program
design and briefly describes the model used to calculate
CAE's actual cost. The results of the latter are then
included throughout the rest of the report as appropriate.
The remaining parts of the chapter focus on CAE's
stakeholder's students, tertiary education
institutions, financial entities, and the Government of
Chile and explore and analyze the impact the CAE program has
had on them. The third and final focuses on recommendations
for improving CAE: increasing loan repayment rates, lowering
capital costs of loan origination, and increasing the
coordination of CAE with other student aid programs. The end
of the chapter then shows what the financial impact of these
recommendations might be for the Government of Chile. |
| format |
Economic & Sector Work :: Other Education Study |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Chile's State-Guaranteed Student Loan Program : Analysis and Evaluation |
| title_short |
Chile's State-Guaranteed Student Loan Program : Analysis and Evaluation |
| title_full |
Chile's State-Guaranteed Student Loan Program : Analysis and Evaluation |
| title_fullStr |
Chile's State-Guaranteed Student Loan Program : Analysis and Evaluation |
| title_full_unstemmed |
Chile's State-Guaranteed Student Loan Program : Analysis and Evaluation |
| title_sort |
chile's state-guaranteed student loan program : analysis and evaluation |
| publisher |
Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2011/03/16406290/chiles-state-guaranteed-student-loan-program-cae http://hdl.handle.net/10986/12954 |
| _version_ |
1764421007546777600 |
| spelling |
okr-10986-129542021-04-23T14:03:03Z Chile's State-Guaranteed Student Loan Program : Analysis and Evaluation World Bank ACADEMIC PERFORMANCE ACADEMIC YEAR ACADEMICALLY QUALIFIED STUDENTS ACCESS TO FINANCING ACCESS TO TERTIARY EDUCATION ACCESSIBILITY ACCOUNTING ADMINISTRATIVE COSTS ALTERNATIVE SOURCES OF FINANCING AMOUNT OF CREDIT ANNUAL PAYMENTS ASSETS AUCTION AUCTION PROCEDURES AUCTION TECHNIQUES AUCTIONS AVERAGE DEBT BANK POLICY BANKS BASIS POINT BASIS POINTS BENEFICIARY BID BIDS BONDS BORROWER BORROWING BORROWING CAPACITY CAPITAL COSTS CAPITAL MARKETS CAPITAL REQUIREMENTS CAREERS CASH FLOW CASH FLOW ANALYSIS CASH FLOWS CASH ON HAND CASH OUTFLOWS CASH TRANSFER CENTRAL BANK COLLECTION EFFORTS COLLECTION PROCESS CONTINGENT LIABILITIES CONVENTIONAL MORTGAGE CREDIT BUREAU CREDITS DEBT BURDEN DEBT BURDENS DEBT LEVELS DEBT PAYMENT DEBT PAYMENTS DEBT REPAYMENT DEBT SERVICE DEBT SERVICE RATIO DEBTS DEFAULT RATES DEFAULTERS DEFAULTS DEGREE PROGRAMS DEGREES DEPENDENT DEVELOPING COUNTRY DEVELOPMENT CORPORATION DISBURSEMENT DISBURSEMENTS DISCOUNT RATE DIVERSIFIED PORTFOLIO DROPOUT RATES EARNINGS ECONOMICS OF EDUCATION ECONOMIES OF SCALE EDUCATION LOAN EDUCATION SECTOR EDUCATION STUDENTS EDUCATIONAL BACKGROUNDS EDUCATIONAL LOANS ELIGIBILITY CRITERIA EMPLOYEE EMPLOYER EMPLOYERS EMPLOYMENT ENROLMENT RATES ENROLMENT SHARE EQUAL TREATMENT EXCESSIVE DEBT FACE VALUE FAMILIES FAMILY INCOME FINANCIAL ASSISTANCE FINANCIAL DIFFICULTY FINANCIAL NEED FINANCIAL NEEDS FINANCIAL OBLIGATIONS FINANCIAL SYSTEM FISCAL RESOURCES FIXED INTEREST FIXED INTEREST RATES GLOBAL DEBT GOVERNMENT GUARANTEES GRACE PERIOD GRADUATION RATES GRANT PROGRAMS GROSS DOMESTIC PRODUCT GROSS TERTIARY ENROLLMENT GUARANTY HIDDEN SUBSIDY HIGH DEBT SERVICE RATIOS HIGHER EDUCATION HUMAN CAPITAL HUMAN RIGHTS INCOME GROUP INDIGENOUS SCHOLARSHIP INDIVIDUAL LOAN INFLATION INFORMATION SYSTEM INFORMATION SYSTEMS INSOLVENCY INSTITUTIONAL ARRANGEMENT INSTRUMENT INSURANCE INSURANCE POLICY INTANGIBLE INTEREST RATE INTEREST RATES INTERNATIONAL STANDARDS INVESTMENT FUNDS JUDGE JUDGMENTS LABOR MARKET LEARNING LEARNING OUTCOMES LEGAL ACTIONS LEGAL FRAMEWORK LEGAL PROCEDURES LENDERS LEVERAGE LEVERAGES LIQUIDITY LOAN AMOUNT LOAN AMOUNTS LOAN BALANCE LOAN BALANCES LOAN DOCUMENTATION LOAN GUARANTEES LOAN PAYMENTS LOAN PORTFOLIO LOAN PORTFOLIOS LOAN PRINCIPAL LOAN PRODUCT LOAN PRODUCTS LOAN RECOVERY LOAN REPAYMENT LOAN REPAYMENT RATES LOAN REPAYMENTS LOAN SERVICING LOAN SIZE MANDATE MINIMUM WAGE MINISTRY OF EDUCATION MORTGAGE NATIONAL ACCREDITATION NEEDY STUDENTS NEGOTIATIONS OPPORTUNITY COST PAR VALUE PENSION PENSIONS PREPAYMENT PRIVATE BANKS PRIVATE CREDIT PRIVATE CREDIT BUREAU PRIVATE UNIVERSITIES PROFESSIONAL DEGREE PUBLIC FINANCE PUBLIC POLICY PUBLIC SUBSIDIES RATE OF RETURN RATES OF RETURN REAL INTEREST REAL INTEREST RATE REMAINING DEBT REPAYMENT REPAYMENT BEHAVIOR REPAYMENT OBLIGATION REPAYMENT PERIOD REPAYMENT PERIODS REPAYMENT RATE REPAYMENT RATES REPAYMENTS RESEARCHERS RESERVES RISK-FREE RATE SAVINGS SCHOLARSHIP PROGRAMS SCHOLARSHIPS SECOND LOAN STATE GUARANTEE STATE GUARANTEES STUDENT AID STUDENT ASSISTANCE STUDENT DEBT STUDENT FINANCIAL AID STUDENT LOAN STUDENT LOAN BENEFICIARIES STUDENT LOAN PROGRAM STUDENT LOAN PROGRAMS STUDENT LOANS SUBSIDIZATION T-BILLS TAX TAX RETURNS TEACHERS TEI TERTIARY EDUCATION TERTIARY EDUCATION INSTITUTION TERTIARY EDUCATION INSTITUTIONS TERTIARY EDUCATION SYSTEM TERTIARY ENROLLMENT RATE TERTIARY INSTITUTIONS TOTAL DEBT TRANCHE TRANCHES TRANSFER PAYMENT TRANSPARENCY TUITION UNDERGRADUATE DEGREE PROGRAM UNDERGRADUATES UNEMPLOYMENT UNIVERSITIES UNIVERSITY DEGREE UNIVERSITY ENTRANCE UNIVERSITY STUDENTS VETERINARY MEDICINE WRITTEN COMMUNICATIONS Chile's Programa de Credito con Aval del Estado (CAE in its Spanish acronym) is uniquely positioned to help hundreds of thousands of qualified-but-financially-needy Chileans attend and finish tertiary education. The CAE program was designed to improve access to and equity in tertiary education. In 2010, after only four years of operation, the Program had 216,000 active borrowers or 23 percent of the 940,000 students in pre-grado. Even as the annual number of new beneficiaries levels off, the portfolio will increase for the next several years until reaching a steady state with approximately 460,000 active borrowers by 2016. This report is part of the 2010 Joint Studies Program between the Government of Chile and the World Bank. The purpose of the study is three-fold. First, to evaluate the impact of this program on access to and equity in higher education, taking into account the effectiveness of targeting qualified but financially needy students and its complementarities with other major student aid mechanisms. Second, to understand the size of the economic commitment the Chilean Government has made with this program, both in terms of its investment to date and its contingent liabilities. Third, to formulate recommendations for improvements going forward. The first chapter summarizes CAE's legal framework and institutional arrangement, explains how the CAE system functions, and describes the main characteristics of the loan product. The second chapter presents a brief overview of CAE's structural cost according to current program design and briefly describes the model used to calculate CAE's actual cost. The results of the latter are then included throughout the rest of the report as appropriate. The remaining parts of the chapter focus on CAE's stakeholder's students, tertiary education institutions, financial entities, and the Government of Chile and explore and analyze the impact the CAE program has had on them. The third and final focuses on recommendations for improving CAE: increasing loan repayment rates, lowering capital costs of loan origination, and increasing the coordination of CAE with other student aid programs. The end of the chapter then shows what the financial impact of these recommendations might be for the Government of Chile. 2013-03-26T19:34:23Z 2013-03-26T19:34:23Z 2011-03-08 http://documents.worldbank.org/curated/en/2011/03/16406290/chiles-state-guaranteed-student-loan-program-cae http://hdl.handle.net/10986/12954 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Other Education Study Economic & Sector Work Latin America & Caribbean Chile |