Chile to Create Loans for Private U.'s.

Navigation: Main page

Author: Ceaser, Mike

Chile plans to create a loan-guarantee program for students at private universities, despite protests from student groups at public institutions.

The proposal, which has passed both houses of the Chilean Congress, will create an 8-billion-peso ($13.7-million) fund to guarantee loans to students at private universities accredited by the government. The system is modeled in part on the Sallie Mae loan program in the United States, as well as on programs in Europe and Australia, said Pilar Armanet, who directs the Ministry of Education's division of higher education.

Chile's university population has expanded by 6 percent annually over recent years, and growth has been equal at public and private universities, she said. Many of the new students are from low-income families, increasing the need for loans. Almost 60 percent of Chilean university students attend private institutions, which have a larger share of poor students, she said.

But some public-university student groups have protested the new system, which is awaiting the president's signature to become law. They say it will compete for resources with the existing loan program for public universities. Students have also objected to a provision by which the amount of money available to different majors will be adjusted in response to the job markets in those majors. They say that would shortchange less-commercial majors like the fine arts and philosophy.

"Obviously, it would be crazy to place more resources" in a major with weak financial prospects, Ms. Armanet said. However, she said that some money would still be made available to students in such majors.

Eighteen private universities have released a statement supporting the law but objecting to its accreditation provisions, which they believe would be unfairly applied to private institutions.

~~~~~~~~

By Mike Ceaser