Student Loan Reforms for German Higher Education: Financing Tuition Fees It is generally agreed that the funding base for German universities is inadequate and perhaps the time has come for serious consideration of the imposition of non-trivial tuition charges. Against this background, this paper compares conventional and income contingent loans for financing tuition fees at German universities...

We analyze the role of intermediaries on electronic markets using detailed data of more than 14,000 originated loans on an electronic P2P (person-to-person) lending platform. On such an electronic credit market lenders bid for supplying a private loan. Screening of potential borrowers and the monitoring of loan repayment can be delegated to designated group leaders. We find that these participa...

Abstract. We consider a controlled system of differential equations modeling a firm that takes a loan in order to expand its production activities. The objective is to determine the optimal loan repayment schedule using the variables of the business current profitability, the bank’s interest rate on the loan and the cost of reinvestment of capital. The portion of the annual profit which a firm ...

Can microfinance borrowers use the discipline of regular loan repayments in order to accumulate savings if prompted to do so? In an experiment, we offered commercial savings products to the microfinance borrowers of Guatemala’s largest public-sector bank. We find that giving these borrowers the opportunity to develop a saving plan and be reminded of saving at the time of loan repayment caused n...

We examine a randomized trial that allows separate identification of peer screening and enforcement of credit contracts. A South African microlender offered half its clients a bonus for referring a friend who repaid a loan. For the remaining clients, the bonus was conditional on loan approval. After approval, the repayment incentive was removed from half the referrers in the first group and add...

Banks advance loans in the absence of precise knowledge in relation to the outcome of borrowers’ projects. Consequently, uncertainty in relation to loan repayment emerges. Thus, banks introduce the ‘credit standard’ as insurance against loans, so that should borrowers’ projects fail, borrowers have an alternative means of honouring their debt obligations. It is argued in this paper that in the ...

Previous studies suggest that a college degree is the great equalizer leveling playing field. However, rapidly growing educational debt of graduates might restrict their life chances throughout adulthood, particularly for those raised in socioeconomically disadvantaged families. This study uses data from National Survey College Graduates to examine whether parents’ socioeconomic status related ...

the study assessed beneficiaries’ satisfaction in the management of loag-contract components by cooperatives involved in the farm credit delivery in edo state. the objective was to identify the components of the farm loan contract, examine the management strategies and rate the beneficiaries’ satisfaction of such management strategies. this was done by purposively selecting 40 cooperatives invo...