Business and Finance Info

In January last year, former President Michelle Bachelet announced a benefit that would, in his own words, look for a mattress in the pockets of the poor. “We have decided that my government is going to expand for the second consecutive year-guaranteed loans for higher education, benefiting in 2010 to a total of 92 000 vulnerable students, but also middle class, belonging to the fourth quintile of income. “

Bachelet’s voice in the Patio de Los Naranjos firm was heard. Using the time I had to promulgate a law for SMEs, the former governor took that morning, the chance to talk about education: “Because we have done well because we believe in the role of the state and social protection” .

However, the credit-guaranteed (CAE) became a lifeguard lead. On the one hand is an objective tool for those who need support to study and do not have it, but the other has benefited more to the bench at the expense of high interest to students and a high cost to the state. Not for nothing was one of the major announcements Sebastián Piñera. The mission: to lower the rate to 4% and include unemployment insurance.

Until 2010 the business was owned by various financial institutions and became a managed this year by a single provider: Corpbanca, whose majority shareholder is Alvaro Saieh. The employer owns also COPES-which owns the daily La Tercera, La Cuarta, La Hora Que Pasa and-driver, SMU, the third supermarket chain in the country; Construmart; OK Market and the largest income annuities in the country (CorpVida).

Whether a single institution to take over the business is part of the revenue bases, the entity that administers the system. Competed with 13 institutions, and chose a low credit rate of 5.7% to 5.3% per year. As more institutions competing for the administration, the premium paid in the portfolio purchased from banks by the Treasury under 30% average 6% average. But this could be very variable in the future.

In Enter explained that during the month of May was held the bidding process to award public service financing and receivables management for higher education regulated by Law 20,027, for the year 2011. In this bidding process, financial institutions, as a whole had 160 offers, for a total of 20 nominations of students to be awarded. On June 3, the Commission awarded the portfolio Enter Guaranteed State Credits, 2011, Corpbanca to present the best deal for the total payroll in bidding. The criteria used for this assignment are established in the bidding public that the Commission realized income (bases that have been previously approved by the Comptroller General of the Republic). These are mainly of two variables. On the one hand, we analyze what percentage of the total appropriation for each payroll sell the bank to the Treasury of the Republic, taking into account the maximum allowed is the equivalent of 45%. The second variable looks at how much a bank surcharge will apply on the amount sold to the Treasury. Thus, the order of bids is given by the result of the multiplication between both factors, leaving that institution first to propose a sale and charge less.

This credit is aimed at those who are not eligible to Corfu and the Solidarity Fund, for the 25 universities that comprise the Council of Rectors, and according to their own houses of study in a decrease does not help so small, “From the general point of view all universities are concerned about the difference between solidarity and guarantee credit and the main concern us because we have many students who study with this system. A rate of 5.3% is still very high, “says Luis Winter, president of the Corporation for Private Universities.

For Jaime Retamal, head of the Department of Racing USACH, “no one can doubt that the CAE is an instrument usury and unjust harm especially the middle and lower classes. Therefore, a priori, a financial institution that not only looks at one’s own interests, but also has a social conscience, debiese subtracted to participate in the business that profits from higher education and it should also be subtracted to participate in perpetuating such credits. CAE is truly scandalous as a tool and it should also be investigated as such. “

In the field there are those who also point out that no matter what the interest rate on this loan or how much lower, since it will always be invaluable for students of low level while studying at universities bad. “It’s a loan that costs 100 UF a year for five years. That person at the current rate will end up paying 83 000 dollars a month. If you lower the current to 3.7, then the problem is not there because that quota will remain at 73 pesos. The problem is you have bad races, professionals with salaries that will not be able to repay loans, “says an actor in the financial market education.