- In the Philippines, 73% of employers are only hiring college graduates, even after the K12 implementation (Jobstreet.com, 2018).
- InvestEd helps unbanked students finish university through its high-tech student loan program.
- Vanderes Foundation makes its first impact investment in the Philippines.
PHILIPPINES, JUNE 2018 — InvestEd, a home-grown startup in the Philippines, provides marginalized college students loan products that are exactly fit for their needs, payable only after they graduate and gain employment. This includes loans for tuition, daily allowance, dormitory, projects, vocational study, laptops, and licensure exams. By 2022, InvestEd aims to slash the college dropout rate in half by reaching a total of 300,000 students.
The Vanderes Foundation was set out to improve the access to quality education. In their first year of existence, they’ve been able to support three student loan providers in Southeast Asia. Through them, Vanderes provides underprivileged students with the opportunity to change their lives for the better. These students are often the first ones in their families to go to university and get a degree. The Foundation believes that those degrees are not solemnly the key to a more fulfilling life for the students themselves, but also for their families and especially their future children.
“InvestEd has an ambitious plan; reducing the number of Filipino youngsters that can’t finish their studies due to financial shortcomings in five years’ time. We are very proud to support this goal with our partnership and will help them succeed wherever we can.”
Carmina Bayombong, InvestEd’s CEO said:
A Scalable Student Loan Program for Developing Countries
To attract loan capital to fund students, InvestEd allows individuals, corporations and foundations to lend to students in return for fixed annual earnings. Funds provided by lenders are managed by InvestEd to ensure the spread of risk, return and growth of capital. To-date lenders have loaned a total of 7M pesos at InvestEd.
To-date, InvestEd with the help of its lenders, has loaned out almost 4 million pesos to students across five regions, namely Metro Manila, Calabarzon, Cagayan Valley, Central Luzon and Bicol. True to its mission, InvestEd has been serving the marginalized: 22% of InvestEd’s students previously dropped out of college before getting an InvestEd loan; 43% got loans from predatory lenders before InvestEd, while 90% were unbanked or had no access to formal financial services before InvestEd. InvestEd is also empowering more women to succeed, with 61% of its student borrowers being female. These include women who have dropped out before due to motherhood and women entrepreneurs who have been sustaining their education through micro businesses.
Mirte Gosker, Chair of Vanderes Foundation shares,