EduFinance helps parents finance their children's education and helps affordable private school owners access the capital and support they need to grow and improve their schools. To date, more than $331 million has been loaned to school owners and parents through Opportunity's two flagship education loan products, the School Improvement Loan and the School Fee Loan, benefitting more than 6.5 million students in 23 countries since the start of the program.
Our expert technical assistance team works with socially focused financial institutions to help us pursue our goal of universal access to education. The EduFinance Technical Assistance Facility (ETAF) team, made up of microfinance experts in Europe, Africa, Asia, and Latin America, supports financial institutions as they develop, launch, and grow sustainable lending portfolios.
School Improvement Loans
School Improvement Loans set the stage for rapid and sustainable school improvement, ensuring more students gain access to a better education. These loans are used by school owners to invest in their schools' most pressing needs.
School owners use School Improvement Loans for:
- Infrastructure and expansion, like building new classrooms, bathrooms, or dormitories—all of which are especially important to improve students', and especially girls', attendance and enrollment.
- Improving educational provisions by hiring new teachers to reduce class sizes, or purchasing textbooks, classroom supplies, desks, or computers.
- Enhancing health and safety by adding metal roofs, concrete floors, security fencing, and wells, piping, or filtration systems for clean water.
School Fee Loans
School Fee Loans help parents who earn irregular or seasonal incomes keep their children in school year-round. A lack of cash at the beginning of the school term often results in a child not enrolling or being pulled out of school. School Fee Loans ease the pressure of upfront educational costs, effectively spreading out the costs of children's education. These loans prevent school dropouts or missed classes during times of household financial uncertainty, when parents may struggle to pay for school fees, uniforms, materials, or transportation.
School Fee Loans help:
- Students stay in school. Even when students attend free public schools, parents must pay for expenses such as transportation, uniforms, food, and classroom materials. When families are unable to cover the costs, children skip a term or drop out.
- Girls go to school. When money is tight, parents will often choose to send their sons to school before their daughters.
- Students improve their learning. When students can't attend school consistently, they have trouble progressing through the curriculum and keeping up with their studies.
Technical Assistance for Financial Institutions
Our team offers our financial institution partners technical assistance in the following areas:
We conduct a thorough analysis of the scale of the Education Finance market for each of our partner financial institutions. We combine our global expertise in Education Finance with local insight by conducting hundreds of interviews with affordable private school owners and the parents of their students.
Based on the outcomes of our market research, we work with financial institutions to design financial products that meet the needs of the parents and school owners that use them.
We run training programs for branch managers, loan officers, credit and risk officers, and head office staff to ensure the successful launch, growth, and management of the education lending portfolio. We take a modular approach to staff training so that content and sessions can be customized based on the needs of the individual financial institution.
Our Business Intelligence team provides our partners with a monthly dashboard displaying analysis of their education finance portfolios. Analyses are used to improve the management, risk mitigation, and profitability of our partner financial institutions' portfolios.
Automated Credit Assessment
The EduFinance Algorithm is a calculation that uses Education Finance borrower data to predict default rates for School Fee Loans and School Improvement Loans and improve lending decisions. Our unique system models default predictions, which can then be deployed by financial institution staff. The assessment tool is tablet-based so that loan officers can deliver real-time lending decisions.