Affordable higher education student financing


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Affordable higher education student financing
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Formal Education
Business Model Description

Provide higher education financing to students through non-predatory credit schemes

Expected Impact

Allow lower/medium income students to access higher education and include them in the financial system

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
Loans offered at 2.5-3% interest rates
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
Required credit amount of at least 6 billion USD (15)
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Quality Education (SDG 4)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Gender Equality (SDG 5) Decent Work and Economic Growth (SDG 8)
Sector Sources
  • 1) Bertelsmann Stiftung, 2019, 2) Globo, 2019, 3) The Brazilian Report, 2019, 4) OECD, 2018, 5) The World Bank. 2016, "A Snapshot of Gender in Brazil Today: Institutions, Outcomes, and a Closer Look at Racial and Geographic Differences. ""
IOA Sources
  • 6) Gauchazh, 2019, 7) Correio do Povo, 2019, 8) Bradesco, 2019, 9) Folha de São Paulo, 2018, 10) Sindicato das Mantenedoras de Ensino Superior, 2015, 11) Globo, 2017, 12) Ministério da Educação, 2018, 13) Globo, 2018, 14) Mundo Vestibular, 2018, 15) Globo, 2018, 16) Money Times, 2018, 17) Empresa Brasil de Comunicação, 2019, 18) Pravaler, 2019, 19) Globo, 2017, 20) Veja, 2015, 21) United Nations Global SDG Database. “SDG Indicators.” 22) Alves, Aluisio. 2019. “Brazil’s Itau More than Quadruples Stake in Education Lender Pravaler to 37.9%.” Reuters, December 27, 2019.