HIGHER EDUCATION FINANCE CHALLENGES: DISCUSSION (1)

The loading for credit worthiness has range from 1.00 to 0.86. All the loadings are significant. The loading for loan duration was set to 1.00. It is due to the facts that managers consider this factor for as an important to generate revenue for longer period of time. The next maximum loading is for institute rating (0.98). Here, it is pertinent to mention that many banks have signed agreements with leading institutes like IITs and IIMs where salary packages for the students are very high. The other challenges have loadings; income source (0.95), risk pass (0.94), unemployment (0.92), loan servicing (0.93), and residential proof (0.89), high risk (0.92), and credit worthiness (0.86). All the loadings in this category of challenges are significant indicating their contribution for managerial decision making.

The loading for bank policy on HE loan has range from 1.00 to 0.93. The maximum loading was set for no multiple loans (1.0). It is due to the fact that managers are reluctant to sanction multiple loans to avoid defaults. The next maximum loading is for guidance document (0.99). It shows that banks clearly explain the facts regarding HE loan to the students. The loadings for the other challenges; type of institute (0.94), unsafe credit (0.97), margin money (0.95), and institutes for loan (0.93), show their importance for this category of challenges.

The loading for reasons for borrowing has range from 1.0 to 0.83. Here, the challenges have loadings; parental contribution (0.93), good institute (0.99), more choice (0.0.96), increased borrowings (0.91), professional esteem (0.83), and increase in demand (1.0). The maximum loading is set for increase in demand shows that nowadays managers like to harvest profits by sanctioning HE loan. The next maximum loading for good institute (0.99) shows that banks prefers to sanction loan to the institutes where more effort have been made for placements. It helps to recover loan. All other loadings indicate their significance for this category of challenges.

The loading for subsidization of HE loan has range from 1.00 to 0.74. The maximum loading (1.0) is set to the growth of HE. It is due to the fact that nowadays demand has increased for HE loan due to employment opportunities associated with HE. The challenges load; government policies (0.91), promotes HE (0.84), enhancement (0.85), and active role (0.74). All these challenges also show their significance for this category.

Representative APR 391%

Let's say you want to borrow $100 for two week. Lender can charge you $15 for borrowing $100 for two weeks. You will need to return $115 to the lender at the end of 2 weeks. The cost of the $100 loan is a $15 finance charge and an annual percentage rate of 391 percent. If you decide to roll over the loan for another two weeks, lender can charge you another $15. If you roll-over the loan three times, the finance charge would climb to $60 to borrow the $100.

Implications of Non-payment: Some lenders in our network may automatically roll over your existing loan for another two weeks if you don't pay back the loan on time. Fees for renewing the loan range from lender to lender. Most of the time these fees equal the fees you paid to get the initial payday loan. We ask lenders in our network to follow legal and ethical collection practices set by industry associations and government agencies. Non-payment of a payday loan might negatively effect your credit history.

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