In almost every country, the government has put in place measured and policies to ensure no child stays at home simply because they cannot afford to pay for education. As a way of promoting education investment, the government has passed the law which states that every child who attains the minimum threshold required to join an institution of learning must be allowed to apply for an educational loans. In the United States and Kenya for example, education investment has been done through educational loans. With such a provision students have an opportunity to apply for educational loans crucial for taking them through to the higher levels of education.
Benefits of educational investment using educational loans
Educational loans enhances equity. Most of the states in the world have been fighting to make sure that there is a reduced gap between the rich and the poor. In so doing, the poverty levels will be brought down to a manageable levels. In order to reduce such a gap, education investment has been promoted and implemented. The implementation of such an investment has led to the provision of loans to students or potential learners who would have otherwise not be in a position to finance their education. In so doing educational investment has brought about equity as far as social and economic disparities are concerned.
Education investment through loans promotes national economic growth. When educational investments are done through availing educational loans to students as well as educational institutions, the long term outcome will be more students getting education. On the other hand the financial institutions will be in a good position to provide quality education to its clients. In the event where there are many graduates ready to join the labor market, national economic growth will be the ultimate outcome.
Educational investment promotes national gross domestic product. National domestic product is accrued from the total income earned per person. The more the number of people who have the right level of education, the higher the GDP of a specific country. With that idea in mind, it is very important to be aware of the fact that education investment is the basis in which gross domestic product gets to grow. It is important therefore to invest in education so as to promote personal financial growth as well as national domestic financial growth. That is how much education investment can be of benefit.
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