A New Impact Investing Model for Education
Rahil Rangwala,
Jan 17, 2018
This post describes a funding model for private schools in India where owners can get loans and, if the students achieve certain educational outcomes, they can get rebates on those loans. "As philanthropic investors," writes Rahil Rangwala of the Dell Foundation, "we get a double-whammy win. We achieve what we care about most—improving education in a fragmented, otherwise hard-to-reach market of small-time school entrepreneurs—and only pay when schools demonstrate measurable change in learning outcomes." But why focus this investment on loans to private schools? Why not develop public education by offering loans (and the same conditions) to the government? Why do people so often feel private sector loans and financing are good things, and public sector dept is an evil?
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