An education fund is beneficial in many ways to both students and the university.
Benefits for students:
A micro-loan for a reasonable period can help overcome financial bottlenecks and the need to drop out or interrupt studies, especially if it can be tailored to the requirements of the recipient. In particular, if you have to work on several jobs just to finance your studies, you can scale this back to the benefit of your education and performance.
Loans have to be repaid only after you graduate and reach a certain level of income.
Payments are socially responsible – those who earn more, repay more, and those earning less have to pay back less.
Most of all, though, repaid loans help future students!
Benefits for the university:
Lowers the dropout rate arising from financial difficulties.
Students can concentrate on their studies instead of jobs.
Students who have to work less tend to finish sooner.
Graduates who make use of the education fund develop a stronger bond with their alma mater than the rest.