HONDURAS - STUDENT LOAN FUND - EDUCREDITO

LOAN WILL ALLOW EXPANSION OF FUND FOR STUDENT LOANS, SUPPORT TECHNICAL ASSISTANCE TO EDUCREDITO, AND FINANCE A PORTION OF THE ADMINISTRATIVE COSTS AS EDUCREDITO DEVELOPS INTO A SELF-SUFFICENT INSTITUTION. EDUCREDITO LOANS DESIGNED TO ENABLE A STUDENT TO START AND FINISH A DEFINITE STUDY PROGRAM OR COMPLETE A PROGRAM IN WHICH HE IS ALREADY INVOLVED; NO LOANS ARE MADE WHICH CARRY A STUDENT ONLY PART OF THE WAY THROUGH A PROGRAM. LOANS COVER TUITION, BOOKS, ROOM/BOARD, AND PERSONAL EXPENSES FOR A MAXIMUM OF 3 YEARS, UPON THE CONDITION THAT STUDENTS RETURN TO HONDURAS TO WORK AND REPAY LOANS WITHIN 5 YEARS. TECHNICAL ASSISTANCE TO EDUCREDITO WILL ALLOW DEVELOPMENT OF A SOUND FINANCIAL SYSTEM, DEVELOPMENT OF STANDARDIZED TESTS FOR EVALUATION OF LOAN APPLICANTS, AND SPECIALIZED TRAINING OF SELECTED EDUCREDITO STAFF. FUNDS ADMINISTERED TO EDUCREDITO BY THE MINISTRY OF ECONOMY AND FINANCE. LOAN MONITORED BY USAID. LOAN WILL PRIMARILY BENEFIT THE RURAL AND URBAN POOR.