Designing a credit system to match better performing students with best foundation universities

A private credit system is designed in this thesis, since there is not a system providing a financial support for the students, who have sufficient scores from university entrance exams for paid education in the best foundation universities in Turkey. This financial support is created for borrowing from the banks while necessary collateral being provided by the Education Guarantee Fund and another support is presented by a repayment system, in which the students make payments in direct proportion to their incomes after graduation. At the same time, the government provides interest subsidy support for the repayments of the students, thus the repayment cost for the student is decreased. This research study is composed of six sections; first section is the introduction, the second section is importance of higher education, the third section is the analyzing better performing students and best foundation universities, the fourth section is financing higher education with loans, the fifth section is policy suggestion for financing the higher education, and the sixth section is the conclusion. The finance need of the students, who had sufficient scores for the best foundation universities, was supported by a field research conducted on 253 students. In order to fulfill the finance need of the students, applicable credit systems were discussed and it was determined that the most effective credit system was Education Guarantee Fund.