'Poor but meritorious': An examination of two private financial aid programs for university students in Bangladesh

Access to higher education for the poor in Bangladesh is a frequent public concern, as noted through press reports, government debate, and even social unrest related to the issue of university affordability. In spite of the public discussion, the only higher education equity initiatives in Bangladesh are taking place in the private sector: one is a student loan program launched and financed by the micro-credit agency Grameen Bank, the other is a government-mandated tuition waiver program for "poor but meritorious students" to attend private universities---financed at the expense of the university and not by the government. This study seeks to understand how two private institutions in Bangladesh provide financial aid to students and how characteristics of the organizations influence their orientation toward equity. This study examines Grameen Bank's Higher Education Loan Program and the North South University Financial Aid Program to see how each approaches the delivery of equity for students by answering the research questions: How do different private institutions in Bangladesh provide financial aid programs to needy students? How do characteristics of the organizations influence their orientation toward equity? This study explores how the equity orientation of the respective organizations is influenced by (a) government policy and regulation, (b) the organizational mission, (c) and administrative practice. Although we cannot generalize from two cases, these examples were chosen to highlight differences in equity orientation between private organizations. The data from this study suggest that Grameen Bank has a strong organizational culture focused on its mission of serving the poor, while North South University has a modest equity orientation and uses its financial aid program more as a means to enhance the quality of its student pool than to provide opportunity to the poor. The juxtaposition of these cases gives us clues not only to current private financial aid practices in Bangladesh, but also to reasons underlying the differences in equity orientation that might provide policy guidance. Such an exploration can provide insight into private higher education financial aid programs in Bangladesh and can help to inform policymakers in encouraging private-sector behaviors that aim to assist the poor.