Proceedings of the 2015 International Conference on Industrial Technology and Management Science

Securitizing Higher Educational Loans for Cheaper Cost of Financing and Higher Return on Investment in Malaysia

Authors
S Ismail, R Ali, M.H Bakri, M.N Azman
Corresponding Author
S Ismail
Available Online November 2015.
DOI
https://doi.org/10.2991/itms-15.2015.4How to use a DOI?
Keywords
Islamic student loan-backed securitization; Student Financing; Higher Educational loans; Default; Investment
Abstract
Research has shown that the default rate is higher for those countries that implement the mortgage-type loans. Many researchers have tried to address this issue, usually by analyzing the types of repayment collections such as income contingent loans that can minimize the default rate. However, Malaysia implements mortgage type funding to the student in order for them to continue studies and the default rate is high due to default on repayment. Therefore, this study particularly focuses on how to minimize default by introducing new framework, which has not yet been implemented as a securitization process in Malaysia. This work suggests a structure for Islamic student loan-backed securitization, and studies the potential of the Islamic student loan-backed securitization in resolving the educational loans problem. The main purpose of this research is to investigate the possibility to implement Islamic Student Loan-Backed Securitization that meets shariah-compliance in Malaysia. It is expected that the Islamic student loan-backed securitization that based on the Human Capital Theory become a cheaper cost of financing and higher return on investment in Malaysia. This work proposed a structure of highly graded and marketable sukuk that complies with global shariah principles that will help the Malaysian government to produce high income nation.
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This is an open access article distributed under the CC BY-NC license.

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Proceedings
2015 International Conference on Industrial Technology and Management Science
Part of series
Advances in Computer Science Research
Publication Date
November 2015
ISBN
978-94-6252-123-0
ISSN
2352-538X
DOI
https://doi.org/10.2991/itms-15.2015.4How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - S Ismail
AU  - R Ali
AU  - M.H Bakri
AU  - M.N Azman
PY  - 2015/11
DA  - 2015/11
TI  - Securitizing Higher Educational Loans for Cheaper Cost of Financing and Higher Return on Investment in Malaysia
BT  - 2015 International Conference on Industrial Technology and Management Science
PB  - Atlantis Press
SN  - 2352-538X
UR  - https://doi.org/10.2991/itms-15.2015.4
DO  - https://doi.org/10.2991/itms-15.2015.4
ID  - Ismail2015/11
ER  -