Building a Culture of Higher Education for Mexico's Low-Income Families
Inter-American Development Bank (IDB)
Aspiring college graduates from low-income Mexican families have seized the chance to fund their studies through the education financing company FINAE. Founded in 2006, the company has expanded its student loan offerings over the past two years with essential support from the Inter-American Development Bank's Opportunities for the Majority Initiative (OMJ). To build on that success and bring college degrees from recognized private institutions within reach of more young Mexicans at the base of the pyramid (BoP), OMJ is renewing its support to FINAE by providing a Partial Credit Guarantee of up to USD $7 million to guarantee the issuance of the financial institution's first private education bond on the Mexican capital market. OMJ is also providing FINAE a line of credit of up to USD $3 million so it can continue to expand its student loan portfolio.