New student loans announced
ChilNet extract from El Mercurio, La Epoca
26 February 1997
The government will give US$10 million to private banks to be used as
student loans, announced the Education Minister Jose Pablo
Arellano Tuesday. The government's loan to the banks, at a five
percent interest rate, will allow Chilean students to access up
to US$5,000 annually.
The system, which
will begin this year, will be directed initially to students who
have already completed at least one year of higher education. The
existing system of loans and scholarships provided by the
ministry is aimed at students just beginning their university
studies. "It's important that the tuition fees do not become
a mechanism of exclusion," said Arellano.
will have a 15-year term, with a two-year period of grace, to pay
back their loans after completing their studies.