CORPUS CHRISTI—Inspired by an Internet program that allows donors to provide small loans to entrepreneurs in developing nations, a South Texas school launched a similar pilot program to help ministerial students complete their education without an oppressive debt load.
The South Texas School of Christian Studies—a host extension campus for Howard Payne University’s undergraduate program and the master of divinity program from Hardin-Simmons University’s Logsdon Seminary —created the micro-loan program to provide students interest-free loans and offer donors a personal way to make relatively small gifts to benefit specific students.
“We realize some students are struggling. Prices are going up, and the economy is tight,” said Suzan Benson, director of business and finance at the Corpus Christi school.
As school officials began to brainstorm ways to help students, someone offered the example of Kiva Loans—an Internet company that allows people to make online contributions to provide micro-loans that help Third World entrepreneurs launch small businesses.
Following that model, the school decided to set aside space on its website to post photos and brief profiles of students.
Once the site is populated, donors will be able to choose a student, decide on a level of support—from $50 to $300—and contribute online to an interest-free loan for the selected student.
“Donors can give based on their interests. Some may choose a bivocational minister. Some may select a woman in ministry. Or members of a particular church may want to support a person with a connection to that church,” Benson said.
When a student pays back the loan, the donor will choose how the repaid money is used—either directed toward a micro-loan for another specific student or contributed to a general student-loan pool.
School officials anticipate loans will be available for the spring 2010 semester, depending on donor response.
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“This is a new program, and we don’t really know what to expect,” Benson acknowledged. “Our big concern is that we don’t want students leaving here with a load of debt that will cripple their ministry. We’re just looking at innovative ways to help.”
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