BRAC-Microfinance (BRAC-MF) is piloting an education loan product targeting all levels of education. This study aims to find out how loans can be made accessible specifically to tertiary-level students and the uptake can be improved without compromising the repayment collection.
Researchers: Khandker Wahedur Rahman; Abu S. Shonchoy; Sergio Barrera; Shaila Ahmed; Marjan Hossain
Partners: BRAC-Microfinance (BRAC-MF)
Timeline: 2023-2024
Status: Ongoing
Contact: Marjan Hossain; marjan.hossain@bracu.ac.bd
Context
Even though tertiary education has higher economic returns, the gross enrollment rate in tertiary education institutes in Bangladesh is much lower compared to higher secondary enrollment. The enrollment disparity is more pronounced between rural and urban families and poor and non-poor households. The principal reason for the enrollment gap, especially for disadvantaged rural students is the lack of credit access. Although public tertiary education is heavily subsidized, the out-of-pocket expense is substantially costly for rural families. Further, there are limited merit-based scholarships and no public/private education loan opportunities for tertiary education. Given this situation, BRAC-MF is currently piloting an education loan product (called Alokito Reen or Enlightenment Credit) targeting all levels of education, including tertiary education.
Objectives
The primary goal of the study is to investigate how loan information, other financial aid information, and possibilities of part-time earning information shape loan uptake. The aim is to explore how to make the loan more functional and targeted to tertiary-level students and how to improve the uptake and usability of the loan (by altering the loan contract and benefit features) without compromising the repayment collection.
This study is relevant to SDG 4 (quality education), which aims to ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.
Methodology
The study will use a cluster randomized control trial (cRCT) design by randomly assigning different loan contracts to different BRAC-MF groups, cross-cutting with earning and scholarship information treatment with potential borrowers while stratifying by gender.
Findings and Recommendations
Forthcoming
