Paris School of Economics - École d'Économie de Paris

Paris School of Economics - Ecole d'Economie de Paris

G-MonD Note n°1: “Student loans. Measuring credit constraints in South Africa”

Note n°1 - june 2012


Title: “Student loans. Measuring credit constraints in South Africa”
Authors: Marc Gurgand, Adrien Lorenceau, Thomas Melonio
Abstract: Access to higher education is believed to be a condition for sustained growth based on innovation and technological adaptation. However, university enrolment remains low in most developing countries. South Africa is a relevant case study: as an emerging country it faces the need for an upgraded workforce, but its enrolment ratio into tertiary education remains only 15%. This “G-Mond Note” introduces a research showing that a significant number of South Africans face a credit constraint that prevents them from investing in tertiary education. Based on the evaluation of a credit scheme named Eduloan, it indicates that the development of education loan seems highly suitable and that targeting such loans to a middle-income population is workable and has significant impact on participation into higher education.

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