GIVING STUDENT LOAN: A VERY RISKY ACTION, BUT IT’S THE FINAL SOLUTION
ducation is a very precious investment, especially in this era of AEC. BPS shows us that only 1.7 million (1.4 %) of 122.38 million labor forces who can compete in AEC. The main factor of this tragedy is the level of education that is still very low, it can be easily understood when we see that the number of young generations who continue to educate them selves in higher level (colleges) is very low, about 18,4 % from age group of 19-24. And the first reason why they don’t continue their education is “money”.
It is true that education is a very precious investment, and like all investments, it creates costs, for university tuition, books, and living expenses. But, there…show more content… Until then, Indonesia will look beyond the hills”. Beside the cons of student loan, it will open bigger chances for them who want to continue education at college but have limitation in finance. Even we found it has some risks, it becomes final solution when we can no longer hope that outstanding and underprivileged students will get free costs at colleges as contained in the Constitution of the Republic of Indonesian. But, in implementing this student loan, Indonesia has to create very good student loan program as the way that fit to the condition of Indonesia…show more content… Jamil Salil on his journal “Student Loan in International Perspective” said that there are 4 challenges that appear in implementing student loans. These are demand, funding and coverage, financial viability, and targeting. And what Indonesia can do to conquer the challenges are:
Building an independent student loan institution to conquer funding problem
Funding problems reflect constraints on the availability of financial resources to offer new loans and expand coverage. Funding from the public budget is impossible to accommodate the large number of the loans. Not only because of the availability of the funds, but also public budget is usually affected by the fiscal health of the economy. That’s why Indonesia needs to make this institution to tap funds from private sources. It will receive funds from any private sources who want to participate on this student loan program. Instantly, this institution not only managing the funds from government, but also managing the funds given by any private sources. In running this institution, there should be attractive ways to attract private sources by not avoiding the fact that the loans must be at low interest or even no