Hush-hush donors HE gained doubt, says report

Private sector financing of education is gradually overwhelmed doubts about its social value as well as return on investment. So say the authors of a new report from the education management consultant, Parthenon-eye, presented at last week's summit of WISE "Investing for Impact: Quality education for sustainable and inclusive growth" in Doha, Qatar.

The conference - one of the largest international education conferences - brings together public and private sector operators, policy makers, governments, non-governmental organizations and foundations from over 100 countries.

This year's event was opened on Wednesday with a special address to the wife of US President, Michelle Bema, who launched his initiative "Let the girls learn '.

The report, presented Parthenon-EY Director Ashbin Assomull and Emerging Markets Education Director Marianna Abdu, pointed out that the private sector was made when the demand for education and support services exceeds what the public sector is able to offer.

Focus on emerging markets

Titled Driving class, driving growth: How private capital in education increases access, inspiring innovation and improve outcomes, the report focuses on the emerging markets in Asia, Africa, the Middle East and Latin America.

Abdu told University World News: "This is where we see the greatest growth in demand for quality education, especially in the rapidly expanding middle class.

"Many government systems struggling with the weight of demand that has been growing in recent years."

Assomull said: "Some of the most successful private investment in higher education have taken place in emerging markets for the precise reason that governments are not the means or capacity to cope with increasing demand."

Private loans in Brazil

Speaking to University World News, Assomull said Brazil had the largest private sector in the market of higher education in the world, with the private sector dominates.

Brazilian case studies featured in the report focuses on the Ideal Invest, in the non-banking financial institution specialized in providing loans to students to study at private universities.

Since 2006, it has supported more than 50,000 students through its PRAVALER loan programs totaling more than BRL $ 1 billion (US $ 264 million), the report said.

It is now the largest non-governmental provider of financing student for post-secondary education in Brazil and used asset-backed securities to fund its portfolio.

Ideal Invest has partnerships with 200 universities and expects to double its range to more than 100,000 students in 2016.

Abdu said: "We have student finance companies respond to the abundance of private higher education institutions that offer new student loans for those who can not get a government loan.

"Are they enable thousands of students access to higher education, which otherwise would not have had the opportunity to do so. Because the portfolio of loans financed safety on the Brazilian stock exchange, investors have a real incentive for more students to take up loans.

"Students benefit, of course, as well as universities, which are able to provide education to more people."