ZERO-INTEREST LOAN PROGRAM LAUNCHED FOR ASIAN STUDENTS
(Article on "ASIA-HELP")

By Sheldon Wallbrown
USIA Staff Writer

Washington -- The Institute of International Education (IIE), with the support of the Freeman Foundation, has created a new financial assistance program which will provide $7.75 million in zero-interest loans to students from Indonesia, Korea, Malaysia and Thailand.

The program, called Asian Students in American-Higher Education Loan Program (ASIA-HELP), was introduced during an April 28 press conference attended by the ambassadors of Indonesia, Malaysia, and Thailand.

A $7.75 million grant from the Freeman Foundation of Stowe, Vermont will be used to create a revolving loan program for students in undergraduate and master's degree programs. The initial program will last for two years and students who receive the loans will be expected to begin to pay them back a year after they finish their degrees.

Houghton Freeman, chairman of the Freeman Foundation, said: "We think it is important to assist those Asian students who are being particularly affected by the Asian financial crisis.... Their presence on U.S. campuses brings invaluable Asian perspectives to their host colleges and communities."

The initiative comes on the heels of the recent "Call to Action" statement issued in March by the IIE, NAFSA: Association of International Educators, the American Association of Collegiate Registrars and Admissions Officers, The College Board, and Council of Graduate Schools. This statement calls for a collaborative effort on the part of the federal and state governments, colleges and universities, businesses and financial institutions to address the long-term impact of the Asian financial crisis on Asian student enrollment in the United States.

IIE plans to commit to 700 loans for the upcoming year by May 31. Over the next two years, the program expects to disburse a total of 1,400 loans. These loans will be $2,000 to $5,000 and will cover only a part of the student's financial needs, with the balance to be covered by other sources including contributions from the host institutions and the students. The amount of the loan will be determined by the educational institutions in consultation with the student nominees. These loans will be for one year only to cover on-campus expenses, but students can reapply for the second year.

Colleges and universities which have more than 50 students from the four affected countries are eligible to nominate four students each. More than 300 regionally accredited institutions of higher learning are eligible, but these institutions account for 3/4 of the current Asian student population in the United States. At least one student from each eligible school will receive a loan. One thousand loans will be disbursed in this manner over the next two years.

The governments of Indonesia, Korea, Malaysia and Thailand will also be able to nominate fifty students per year, for a total of 400 loans.

Students who are nominated for ASIA-HELP loans must be currently enrolled in a U.S. college or university, have a 3.0 grade point average and maintain that average during the loan period. Student nominees must also pursue an associate's, bachelor's or master's degree and be able to complete that degree within the 1999/2000 academic year. Loans will not be available to doctoral students.

In order to implement the program rapidly, IIE has created a "paperless" electronic application process through the IIE web site http://www.iie.org/asiahelp/.

Students cannot apply directly to the program but must go through their International Student Office on campus. The deadline for applications is May 15, 1998 and awards will be announced by e-mail and made available on the web by May 30 1998.