Second Student Loan Support Project, APL Phase I

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The Second Student Loan Support Project for Colombia objectives are to: (a) improve coverage by increasing the enrollment and graduation rates of students in tertiary education; (b) improve equity by increasing enrollment and graduation rates of tertiary education students from economically disadvantaged backgrounds; and (c) increase and diversify the sources of alternative funding available to Instituto Colombiano de Credito Educativo y Estudios Tecnicos en el Exterior (ICETEX) in order to increase ICETEX's sustainability. The project consists of two components: (a) providing student loans to talented but needy students; and (b) improving management practices to allow ICETEX to operate more efficiently and increase sustainability. The first project component ICETEX will contribute to expanding equity and access in tertiary education by: a) financing and disbursing student loans, and b) forming alliances with higher education institutions to support students pursuing a tertiary education. The second component will improve management practices by: a) strengthening loan administration, portfolio management and collection procedures and upgrading data technology hardware and software; b) preparing to expand its funding base to ensure long-term sustainability; and c) overseeing project monitoring and impact evaluation. ICETEX will form 75 new alliances with tertiary education institutions. Through these alliances, it will encourage institutions to: (a) increase support and services for low-income students, (b) help students manage education loans, (c) foster a culture of repayment among students, (d) support collection efforts after graduation, and (e) co-finance tuition. The project effective targeting is required to reach the neediest students. dents. It is essential to raise awareness of the financial aid program so that core target groups apply. The project are support in developing study habits and remedial courses in areas such as math and reading comprehension are needed to ensure permanence in tertiary programs.