Income-linked Student

Loan
Another way to finance our studies…

Danny Marguerite – Zy Minh Chan – Ibrahima Coulibaly –

Eliane Ramamonjisoa
08/09/2007
 Executive Summary

1. Introduction

2. Objective

3. Methodology

4. Resources

5. End results

6. Conclusion
Introduction / Objective
The autonomy of universities is one of the major laws set up in France this year. In this context, each university
will have to manage its own budget in the coming years and to deal with the student needs.

Apart from personal savings and scholarships, students ask very often for students loan which is complex and
expensive.

In our comparative analysis, the best interest rate in the market reaches 2,95% for a student loan of 5000€,
refundable within 5 years, starting 3 years after the signature of the contract.

In order to help students in reaching their professional projects, we propose a foundation within Poitiers IAE, as
a nonprofit association composed of its founders, state and region representatives and formers students.

Resources /Methodology
There are many ways to get a decent amount of money.

Former students

Bearing in mind the strong community mind of the school and the strong sense of belongingness of
former students of the IAE, we can expect that these can participate to the treasury of the
association. Hence, there is a morale incentive for them to participate to the future of the school.

First, by setting a minimum amount of participation (1000€), we could expect to attract exclusively
motivated former students. This can be an opportunity for them to develop and maintain durable
networks.

Secondly, to invest money into the association can be a financial advantage. In the French context,
taxpayers who donate to an association can benefit from fiscal deductions on the amount donated.
These deductions relate to cases which are beneficial for the society. It can be through education,
arts, culture or environment or sciences.

ENDOWMENT

With the status of the organization, it will be possible to get financial support from the region and
furthermore from the ministry of Education.

Contingency plan

In the case that the total amount of money raised is lower than the budgeted amount, we will
adapt the loan amount according to the number of students short listed. Moreover, the number
of beneficiaries could be reviewed.
End Results and Conclusion

We offer students loan with a better payback conditions than commercial banks.

All unused amount will be reinvested, so as to maintain the (fond de roulement) of the association.

Derogation will be granted in case of loss of employment and the payback period will be upgrading.

Our foundation stands for an innovation income linked loan.