A loan of up to MX$130 million (around US$10 million) from the Inter-American Development Bank (IDB) will support efforts by Corporativo Laudex, a Mexican higher education financing company, to expand its portfolio to reach 14,000 low-income students by 2018.
Laudex provides, manages and recovers loans to undergraduate and graduate students at private universities throughout Mexico. The company currently has nearly 2,500 loans to students enrolled in approximately 20 private universities in Mexico. Students financed by Laudex are academically qualified to pursue university studies but are unable to attend public institutions due to limited enrollments. They also lack sufficient resources to pay for tuition at private universities.
“The government’s goal of expanding higher education coverage from the current 29 percent to 40 percent by 2018 implies creating 2.1 million new spaces within the university system,” said IDB project team leader Francisco Hernandez. “Should private universities maintain their current proportion in total enrollment, they’d have to increase their capacity by over 700,000 students. Their ability to do this will depend, to a considerable extent, on students’ ability to pay tuition.”
To be financed by Laudex, students must submit personal documentation, secure a co-signer, and be accepted by an eligible university program. The loans, which do not require collateral, allow students to pay only interest until six months after graduation, a significant advantage for those who work part-time or cannot work at all while studying.