1. Education changes everything
Five Reasons MFIs Don’t Lend to
Students
&
1,600 Reasons Why They Should

2. What is ?
U.S.-based product development TA provider & p2p funder.
Creates student loan markets through partnerships with MFIs.
Founded May 2009
Loan products for
19 partner MFIs university and $1.3MM disbursed to
12 countries vocational education >1,600 students.
at leading MFIs.

3. Myth #1: Students won’t repay
2011 PAR 30 (%)
5 Q3 PAR 30 - Portfolio
Subsets:
4.24
4 4.01
3.51 • Interest-only grace period: 0.0%
3 3.2
• Student unemployed at time of
2 loan: 0.0%
1 • Loans > $1,000: 4.36%
0
EOY 2010 Q1 2011 Q2 2011 Q3 2011

4. Myth #2: Students can’t find co-signers
Vittana Students with Co-Signers
2011 Market Study:
– 94% of clients are willing
to a co-sign a student
100% loan for their child.
– 74% of clients are
capable of finding a co-
signer elsewhere in the
family or in the
community.

5. Myth #3: MFIs will always lose money on this
product
Return on Student Loan Portfolio
5.00%
Conditions
4.00% Interest-free Year 1: 50%
capital: Year 2: 25%
3.00%
usage
2.00% Cost of non- 10%
P2P capital:
1.00%
Product APR: 18%
0.00%
Avg loan size: $1,000
-1.00%
300 1050 2000 4500
Total Active Student Borrowers

6. Myth #4: Student loans are too big
Asia:
Latin America: Avg Loan: $500
Avg Loan: $815
Middle East:
Avg Loan: $1,200
Sub Saharan Africa:
Avg Loan: $650

7. Myth #5: There aren’t enough jobs
Change in Monthly Income Post-Graduation
Nicaragua
45 40
40
35
# of students
30
25
20 17
15 12 11
10 5
5 3
1 1
0
0 $100 $200 $300 $400 $500 $600 $700
∆ monthly income ($)
 Survey of 90 Vittana graduates in Nicaragua:
– 76% are currently employed in their area of study
– 78% reported a raise or promotion after graduation

8. Results and Impact to Date
PAR 30 3.51%
(as of July 31, 2011)
140% confirmed income change ≤ 1 year post- 275% projected income change 5 years post-
graduation. graduation.
Isidro Garay Stephen Lumanog Mauda Mairena
Country Nicaragua Country Philippines Country Nicaragua
Current Dentist Current Welder Current Customs
Profession Profession Profession Official
Confirmed 300% Confirmed 130% Confirmed 130%
income ∆: income ∆: income ∆: