As I sit here on the day before Thanksgiving, what comes to mind is the over 250 students on Vittana right now who are poised to transform their lives by continuing their education. Whether it’s Omar Ahmad‘s desire to become a civil engineer in Jordan or Lidia Severina Aban‘s goal to drive economic development in Bolivia, each one of our students has a dream. And that dream will not only change their lives, but the futures of their children and their grandchildren.

As many of you know, the past two weeks have been a rollercoaster ride as we swelled to the top 3 of Chase Community Giving – a crowd-sourced philanthropy program that allows users to vote for local charities to help them win up to $250,000 in grants. On the last day of the competition, however, we were devastated to find out from Chase that over 8,000 of our votes were considered ineligible due to technicalities in voting that they are unable to disclose to us for proprietary reasons. We have been in ongoing communication with Chase to discover why these votes have been called into question since Vittana would never engage in auto voting, robo voting, or any other means to create fraudulent votes. We were thrilled to see that our international community turned out in full force to support us and are deeply saddened by the disappointing results of this competition.

What I’m most thankful for today though is our phenomenal Vittana community of supporters and lenders. Whether you voted for us in the Chase Community Giving challenge or have lent directly to our students, you have personally made a difference in someone’s life. And for that every one of you counts.

When I see my 93 year old grandmother tomorrow, who is still full of as much gumption and drive as I can imagine she was seventy years ago, I’m going to thank her. She was the one who set the direction for my family when she graduated from college and gave each and every one of her children, grandchildren, and great grandchildren the chance for a better life. With your support, every one of Vittana’s students can turn to their grandchildren one day and ask, “What do you want to be when you grow up?”

As a Vittana Fellow I find myself often comparing my educational experience  and my life in the United States to what I see on the ground here in the Philippines. Although the Philippines is a far cry from Washington State there are still many similarities between my life there and what I see here. While growing up there were just four of us…my mother, father, older brother and me. We have a small family but what we lack in size we make up for in love. I couldn’t imagine a more loving, caring and supportive place to grow up. Having such a strong support structure allowed me to accomplish many things in my life that would have been very difficult otherwise.

Graduating from college is a good example of this. I started college at a private school in Miami, Florida because I was given the opportunity to play college soccer there. After my sophomore year I transferred to play soccer at a more competitive program and receive a more challenging education. However, things didn’t work out the way I had hoped. I was not the star of the team or even a starter in my first year playing soccer there. Classes were much more difficult than I had anticipated and I couldn’t find any courses I was interested in.

Red square over looking Mt Rainier from the University of Washington campus in Seattle, WA.

Yet after a lot of soul searching and with the support of my family things got better. I gave my best effort both on the field and in the classroom. In my senior year I played a supporting role on the field, earning my minutes and helping the team on to playoffs. We lost in the second round to the defending national champions but at the end of the season I had no regrets about my effort or my contribution to the team.

In the classroom Political Science became my passion. I recaptured the joy of learning that I had been missing and successfully graduated with a Bachelor of Arts from the University of Washington.

I have learned that with a supportive family and access to education many things are possible. Here in the Philippines “family” is one of the most important pillars of society. If you read some of the student profiles on the website it’s really apparent how many students just want to earn enough money to help their families and improve the quality of life for them. Supportive families are the norm here. In fact big supportive families are the norm, however, access to education is not the norm. Education is expensive and sending children to college is extremely difficult.  

The Commission on Higher Education (CHED) in the Philippines reported on the dropout rate in 2008; of 100 students that start school in 1st grade only 14 will graduate from college. Only 14 out of 100!

This is where Vittana comes in. What we’ve done here in the Philippines is offer financial assistance that gives families an opportunity to send their children to school and to help them graduate. Isamae Duhaylongsud’s story is a good example of what we do all over the world.

Isamae shaking hands with Maricel, Account Superviser of PMPC, during her loan disbursement in the branch office in Calamba, Misamis Occidental.

Isamae is the youngest of five siblings and is now 26 years old. She is studying information technology at Mindanao University of Science and Technology and is the first one in her family to have the opportunity to graduate from college. With this loan she plans to become a computer designer.  She says that without an education she would most likely already have children and probably be without a job.

When Isamae graduated from high school she moved to Cebu to work and earn money to help her family. She worked in several different jobs–as a hotel worker and a chamber maid. However, things are very difficult for a hotel worker in Cebu. The pay was very small and her boss was difficult to work for, constantly scolding the employees, often for no reason at all. She realized that the only way to a better life was through education. So she decided to return home and enroll in school.

Isamae is very excited to be studying now, on her way to becoming a young professional so she doesn’t have to deal with awful bosses and poor wages.

After talking to Isamae I realized how similar we are. We both aspire to have a better life and wish to find success in our future. We both hope to take care of our families and make the most of our talents. The only real difference between us is opportunity, but even now she’s well on her way to expanding those as well…thanks to her loan.

Help remove the differences between us by donating to Isamae and students like her!

[youtube]http://www.youtube.com/watch?v=qJEedBHYP3g[/youtube]

I must admit I knew very little about the Philippines before I arrived. What I did know was that it’s an archipelago in South East Asia and the only Christian nation in Asia. I knew basically nothing about what the people, politics, economy or food was like. It was a big surprise to me that there were travel warnings for the Philippines, specifically the island of Mindanao where I’d be stationed, due to kidnappings, terrorism and political corruption. I was plainly told by Vittana about the risks prior to my departure and was even given the opportunity to change my host country to one without travel warnings. However, I decided to pursue my fellowship in the Philippines.

The Philippines is a nation in turmoil. There are a lot of problems with political corruption as it is widely known that in most important elections the votes are paid for by the politician with the most money. If money doesn’t work then fear and violence are used to ensure power. Less than two years ago the Maguindanao massacre occurred where more than 50 people were murdered with small arms. They were delivering the nomination of a candidate who would oppose the governorship of the reigning family in the province of Maguindanao. 22 journalist were murdered and it became the single deadliest day for journalists in history. Even before this event the Philippines was the second deadliest place for journalists. Second only to Iraq.

Aside from political violence there is violence from extreme terrorism. In the south of the Philippines Abu Sayyaf is a serious threat. They are Islamic extremists who are responsible for bombings, kidnappings, mass killings and are said to have links to Al Qaeda. Abu Sayyaf are often connected to lawless pirates throughout the Sulu Sea making travel throughout the region extremely hazardous. Currently the group has kidnapped several people which are being held for ransom.

Philippine soldiers across the street from the Paglaum branch in Tudela

Another Islamic group that is fighting the government is the Moro Islamic Liberation Front. Possibly seen as a more legitimate group, they are fighting for self determination and the ability to govern themselves in Islamic regions of Mindanao.

There is also the New Peoples Army (NPA) which is the military arm of the Communist Party of the Philippines. Residing mostly in the jungles of remote areas throughout the Philippines the NPA has been fighting the government since 1969. The fight wages on and it is not uncommon to see Philippine soldiers in the streets armed and ready for action.

Researchers, like Patricio Justino of the Institute of Development Studies at the University of Sussex, have found that violence often exacerbates existing problems in impoverished societies. Lack of health, nutrition and education are serious side effects of widespread violence. Support from the state diminishes as more efforts are focused on military activities. Especially in places where corruption runs rampant, like here in the Philippines, very little money is invested in education. The lack of investment in human capital has long term affects for the country and seriously impairs the ability to improve the economy or combat poverty.

This is what makes Vittana’s work so important. Vittana works to combat this lack of investment in human capital. Vittana’s mission statement makes it clear that “we believe the biggest waste in the world is not oil or food or, really, any other material thing–but rather, human potential.” Vittana enables lenders to invest in students who are willing to overcome poverty, violence and any other hindrance placed in their way in order to succeed.

Average Filipino home in rural MIndanao

Cresti Luna Caliguid is a wonderful example of a student that is willing to overcome challenges in order to pursue education and make a better life for herself and her family.

Cresti Luna Caliguid’s mother passed away when she was only two years old. She is one of five children and is the second youngest. Her father is a public school teacher in Ozamiz City. As a single parent, he has somehow managed to send almost all of his children to college even on a meager teachers salary of 15,000 Philippine pesos per month($350 US dollars). Making ends meet has always been a challenge. Aware of her families financial difficulties Cresti Luna has always studied hard. Due to her hard work she received a partial scholarship at La Salle University and was also given a job at the school to help pay for her schooling. Although extremely helpful this financial assistance only covered about half of her expenses.

Sometimes Cresti doesn’t have enough money to pay for school projects, books or field trips like the CPA convention last year in Cagayan De Oro. The convention would have been a perfect opportunity to network and make vital connections that would help her land a job after graduating. However, the trip cost was well out of her price range and she had to pass up a golden opportunity.

This is a tragic and all too common story among students that I have met here in the Philippines. They scrape by with what little money available to them and are often unable to take full advantage of educational opportunities offered. For Cresti money has not prevented her from excelling in the classroom or taking part in extra curricular activities as the Chairman of the student government. This loan from Vittana is a blessing that will help her finish her Accountancy course and prepare for a successful future in business.

If you’re like us and believe in human potential then we invite you to be a part of our movement to combat poverty. Lend to one of our students here and invest in the human potential of students like Cresti Luna.

[youtube]http://www.youtube.com/watch?v=ZcG2bdeWg_4[/youtube]

Here is a short compilation of graduates telling how Vittana loans changed their lives.

[youtube]http://www.youtube.com/watch?v=M63TTSbeocg[/youtube]

For me, it was never really a question of whether or not I could go to college. Sure, money has always been tight in the Foster household and finding a way to pay for college for their four sons was never easy for my parents, but it wasn’t optional either. If we wanted to go to college, we would find a way. Whether through scholarships, student loans, or our own savings, I am fortunate I grew up in a country where a financial support system exists for young people wanting to go to college.

The problem isn’t necessarily the cost of classes, attending college can be surprisingly cheap in Nicaragua. The schools most Vittana students attend vary in cost from about $30 to $120 a month. However, working full-time to earn an average of $240 a month, like many of our students do, this makes up a significant cost. Yet the majority of our students have been able to scrape by and pay these costs, usually without any assistance from their families.

The real killer comes when it’s time to graduate. After 4 or 5 years of studying, getting good grades, and working hard to pay for it, university students in Nicaragua face one final wall that many are unable to scale. After all their studies are done, students typically have to pay about $1,000 USD to receive their diploma. This fee is called a Seminario de Titulacion and is universal in Nicaraguan schools.

Because of these daunting costs, most college students do not graduate. According to data from the National University Council in Nicaragua, less than one-third of students enrolled in university actually graduate.

Nora Karina Avilez is one of the students who beat the odds, although she used to fall into the majority of students who didn’t. She made it through the challenges of five years of college, defending a thesis in psychology, two practicums, walking to school while pregnant, and holding down a full-time job to pay for it. The challenge she couldn’t overcome on her own was paying her final graduation fees. After finishing all her coursework, she languished in a job outside her field of study for two years. This woman’s dreams and her ability to take care of her daughter were put on hold because of $200.

With a $200 loan Nora Karina Avilez was able to pay her final graduation costs, receive her degree and find a better job.

For Nora and other students in Nicaragua, there aren’t many options for financing their education. They could borrow money from a bank but the chances of being approved for a loan are very low. Even if approved, interest rates are typically about 40-50%, turning a formidable cost into an unimaginable cost. In contrast, our partner’s rates are 10% a year.

With a low interest-rate loan, Nora was finally able to pay for her degree in psychology in the summer of 2010. Degree in hand, within three months she was able to get a job with Latin Top Jobs as an assistant in human resources. She has lots of friends who are in the same position she was — they went all the way through school but couldn’t afford the final graduation costs. And she’s not the only one of our students that has friends like that.

Nora explained that those without their diplomas are mostly working in low-paying or temporary jobs outside their field of study, like she was. She explained the crux of the problem — employers don’t care what knowledge you have in your head, she said. They want to see the piece of paper in your hand. Without a loan, she would have remained in that same situation for years.

“Education has guaranteed a future,” she said, “not just for me, but also for my daughter.”

Help other Nicaraguan students like Nora scale this one final wall by lending here.

Watch this video to hear Nora’s story in her own words.

[youtube]http://www.youtube.com/watch?v=bvw48hK2CbU[/youtube]

Meet Aulita Abindan, mother of Winston Abindan — one of our first Vittana students in the Philippines. Winston is learning to be a welder in a three month tech-training course, paid for with a Vittana Student Loan.

Mother, Aulita Abindan                                                             Son, Winston Abindan

Our International Partnerships manager, Sanjaya Punyasena, met Aulita recently while in the Philippines. Although a rather shy woman, she agreed to be interviewed for our blog, and today we pass her words onto you.

Her story is evidence that education is a powerful change agent, not just for a single person, but for but for entire families, and for entire generations.

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Aulita ia a mother of 10 children. She’s been a member of NWTF’s microfinance banking program for a number of years. She took out her own small micro-business loan in order to start her sari-sari shop (convenience store) which is where she currently works, seven days a week.

Of her 10 children, four already have started families of their own, three are working in the city of Bacolod (the Philippine’s second largest city) and one is currently in college studying food technology. Two of her children (other than Winston) had also started college, but had to give up their schooling because they could no longer afford it.

Aulita remembers her son Winston as a hard-working child when he was growing up (he’s now 25). He would work on their family’s farm along side his father and siblings. But, as dedicated as he was to his chores and work, he also made time for fun. She remembers him spending all of his free time playing basketball. In fact, sometimes he’d actually forget to come in for lunch or dinner because he was so engrossed in the neighborhood pick-up games.

Aulita says that she is very happy that she learned about the student loans from NWTF and that they were able to send Winston to school. The whole family has discussed it and agreed that they’ll all pitch in together to make sure that the loan payments are made in full and on time. His success will mean their family’s success, so everyone is willing to help out.

“I’m very happy that Winston is becoming a welder. If he was not in school, he’d be back working on the farm and looking for odd jobs to bring in money for the family. Once he’s a welder, he’ll have a steady job and that will mean good things for his future.”

“I look forward to attending Winston’s graduation, especially if he keeps getting good grades and is doing well. I will be very proud of him.”

Winston’s $749 loan was funded in full by 12 Vittana lenders just a few days after it was posted to the website. He’ll be graduating from his program in March, 2011.

He says: “My family is my inspiration, for without them I could not stand on my own. They were the ones who gave me guidance and love. I am very determined to finish this course so I can help my family. I will persevere in absorbing the things that are taught in school so I can excel and find a stable job right away.”

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Sounds to us like good things are in store for the Abindan family.

In January, Vittana launched a new student lending program in the Philippines by partnering with NWFT – Negros Women for Tomorros Foundation, one of the Philippines’ most innovative financial institutions. We were lucky enough to host two of NWTF’s team members in our Seattle office this week (Jubert Maquiling, MIS Director, and Raymond Serios, Director of Research – in headline photo above), and their visit has riled up so much excitement for our newest program, that I had to share with you their story, and the story of some of our newest Vittana students.

(NOTE:  A full debrief on NWTF and their outstanding commitment to innovating for the poor is forthcoming, but today’s post will focus on the reason we’re all here — our students!)

I asked Raymond Serios, who manages the Vittana student lending program at NWTF, about the process of finding students and launching their new student lending product. He admitted that initially he was cautious about the launching program so soon — NWTF and Vittana are launching the first student lending program in all of the Philippines! But after conducting interviews with prospective student, he changed his mind and he knew it was time to step on the gas!

“More than a few of our current students were working as servants in the big cities of Bacalode or Manila (1-2 hours by boat away) when they heard from their mothers that we were starting to pilot our student lending program. (All NWTF students are children of NWTF borrowers. Their mother’s have usually taken out micro-loans to start a small business and have been NWTF clients for 2-3 years on average.) Without even the guarantee that they would get into our program, they quit their jobs and returned home (with tickets costing a minimum of $100 USD) just for the chance to continue their education. These students are from families that make maybe $2-3/day! That showed me their level of commitment and how powerful a draw education was to our community. I was absolutely convinced that we were doing the right thing by starting this program!”

For the pilot project in the Philippines with NWFT, our students are participating in a three-month welding certificate program. All of our NWTF students are young men in their mid-20′s from a small fishing village where the economy has been particularly hard hit in recent years. As I read their stories (found here), I saw time and time again, with heart-breaking honesty and conviction, just how proud these young men are of improving their skills and building a better future for themselves and their families. Here are a few of their stories:

“In five to ten years, I see myself supporting my parents and siblings.”
Ruel Ellanil, 23 years old. $729 Vittana Student Loan

“I would like to give my family a better future and help with the education of my younger siblings. I will work my heart out to uplift them from poverty.”
Jomel Bacalso, 20 years old. $729 Vittana Student Loan.

“Because of poverty, I wasn’t able to finish school, and now I do odd jobs on the weekends so I won’t be a burden to my parents. They are my inspiration for achieving my goals. I hope that one day I’ll have a good enough job to help them no longer be in poverty.”
Junel Galvez, 26 years old. $729 Vittana Student Loan

A welder in the Philippines makes bout $10/day – a great salary, especially in comparison to the $0.25/day that some of our students were making previously. Many of them have even bigger dreams. In 2012, the US is moving their Okinawa military base to Guam and they’ll need about 3,000 welders to complete the project. Figures show that about 50% of these new welders will be sources from the Philippines, and many of our Vittana students hope to be selected for that work, where they’ll earn even more.

Many of our students are still fundraising, so if you can… consider making a loan today!

On the heels of the amazing press we got yesterday, I’ve been thinking a lot about this statement from the Economist article: “Millions of poor would-be students could benefit (from microfinance student loans).”

Millions. Mmmmmiilllions. That’s a mighty big number no matter how easily is rolls off your tongue.

Stay tuned for an upcoming post on just how many potential students we think are out there waiting for loans, but right now, I want to make that number just a little more personal. If millions of potential students seem too big to imagine, and therefore too easy to not think about, I’d like to introduce you to a family I met one day in Peru.

Meet Rosas. I wish I had a picture of him for you, but due to a much maligned camera-stealing incident that happened many months after I met him, those real photos are gone for good. So word pictures will have to do. He’s a small man, shorter than I am, wiry but obviously strong. He tells me that he’s 48, but I would have guessed at least a decade older. He’s missing a few teeth, but he’s got a bright and easy smile that comes quickly and fills his face with friendliness. He’s a farmer in the high mountains (10,000+ ft) around Huaraz, Peru, where he and his family raise sheep, corn and of course Peru’s famous potatoes.

I met Rosas while hiking through some of Huaraz’s surrounding villages. He was heading back up to his hill-side home from his office job in the small town off the main road. Many people in this part of rural Peru are farmers in addition to holding jobs in the town, if they can get them. We met along one of the rocky and muddy paths that criss-cross the mountains. He overtook us and offered to guide us up the hill (I would have called it more of a mountain) to make sure that we found our way.

The village of Huaraz and surrounding moutains (photo by still searching)

During our walk, a boy in a school uniform ran past us down the path. With his bookbag flapping over his shoulder, it was obvious to see where the boy was going. I asked Rosas about it, and he mentioned that the closest school was actually a few towns away and this boy was running to catch one of the hourly combis (minivans that act like local commuter buses) on the main road. It was already almost noon. When I wondered out loud if he was already late and Rosas responded that many of the kids have farm chores to finish before they can head to school, and with a few miles to walk each way, and then a bus ride on top of that, students are often left with only an hour or so in the classroom each day. And yet, they still go. As we continued up the path we saw at least a dozen more students, ranging in age from 6 to 18, hurrying down past us on their way to school.

Back here in the States, school doors are officially open and I’ve been seeing the perky yellow school buses making their way around town, picking up and delivering their charges. As I was on that hill, I realized the obvious fact that there are a lot of folks in this world who’ve never seen a school bus; never sat on those hard high-backed seats or hidden from a spitball war started by the older kids in back. As irksome as many of us may remember those bus rides, it’s a luxury nonetheless. Sometimes it’s the strangest things that make your breath catch in your throat.

During our climb, Rosas talked about his family. He had four daughters, and as the conversation turned toward their education, I was pleased to learn that two had finished university already and two were still getting their degrees.  This seemed to me like a phenomenal ratio for any family, especially considering the hardships students faced to just finish their secondary schooling. As I learned some of the other details of his story though, the bloom soon came off that rose.

All of his daughters went to public university, which isn’t exactly free, especially considering books and living expenses, but Rosas and his family had been able to afford it, with his wife, his brother and sister-in-law all pitching in to support the family. But recently, times had been tough and Rosas said that he was having a hard time keeping his daughters in school. There had been a corn blight for the past six months, which, now that he’d mentioned it, I could see in the barren fields around me. He also talked about how the government was challenging the farmers’ water rights in the area, so they were concerned about next year’s harvest.

It was easy to see from the look in his eyes, the fear of a concerned father not wanting to disappoint his children. I felt almost cruel telling him about Vittana when he asked about the work I do. It felt cruel because I knew his girls were perfect candidates for our student loan products, and yet there wasn’t a bank within 300 miles of him that would offer him that type of loan.

Or rather, there is no bank, yet.

And that “yet” is what gives me hope.

I’ve been back here in the Vittana offices for just a few days now, but even in that short period of time I’ve watched our Partnerships Manager, Nick, make miracles happen on a daily basis as he finds new microfinance institutions to partner with, and new ways to help them be successful. In fact, just yesterday we uploaded about a dozen new students from Nicaragua, who are shining examples of folks who used to be in the same position as Rosas’ daughters, but who are now able to look forward to a much brighter future.

I’ve also watched the extreme generosity of our lenders – the people who are the real “doers” of this work – the engine grease that keeps this machine running so smoothly. Or, to use a more appropriate metaphor, they are our heart; they pump energy and passion (and of course, cash) into our work in a way that turns all the “not yets” into “hell yesses!”

So maybe the folks of Huaraz, Peru don’t have access yet to student loans. And maybe they don’t have school busses. I don’t think I can do much about the school bus situation, but I get pretty darn excited about the fact that I can (and we are) doing something about the student loan situation. Perhaps one day in the not-too-distant future, that young boy I saw racing down the hill to school will be going to college with a Vittana loan.

And that’ll be better than any school bus.

(School bus photo by Twix)

Today the Economist gave education loans the nod as “the next big thing in microfinance.”

And while usually we’d get a little sheepish about claiming to be involved in a “hotbed” of anything, if the Economist calls “finding new ways to fund poor students” a “hotbed of innovation,” then that’s one bed we’re happy to jump right into with both feet.

We’re particularly honored and humbled to be featured in this article alongside visionaries like our partners in Mongolia, XacBank. (See our students from XacBank.)

Former exec of XacBank, Ganhuyag Ch. Hutagt, was quoted as saying “Lending to get a student through college is a far better way to fight poverty than making small-business loans.”

This is music to our ears.

For more information about the opportunity, risks and rewards of lending to students like Betsy, we invite you to read the article in full, and learn why “millions of poor would-be students could benefit” from this new innovation in microfinance.

It’s Friday again! Where does the week go?

This week, we funded 5 students. We’re adding more students to the site over the next few days, so we hope to fund even more through the end of August.

On Tuesday, we were inspired by a visit from President Obama literally right next door to our office! When we all arrived to work that morning,  we saw crowds gathering and there was a buzz of excitement going. Read Lindsey’s great blog post for more about this adventurous day for us.

We want to close out this week by sharing one of our absolute favorite photos…pictured below is Nardith, one of first students from Peru that our lenders were able to fund. She, and her little brother Stephen, have experienced the transformative change that microfinance can enable. (Stephen is one happy, mischievous little boy, and our favorite!!)

Over four years ago, after finishing high school, Nardith was attending college. However, she got pregnant and, between working full-time, going to school full-time, and taking care of her newborn son, it was just too much for this single mom to juggle. However, Nardith’s mother, Angela, had received a microloan from EDAPROSPO in the past, and used those funds to successfully start a taxi business. Angela transformed from a struggling single mom, to one with a strong source of income.

Nardith was inspired by this, and thought that perhaps EDAPROSPO could help her too…

Fast-forward four years. Nardith is currently going to school full time (4 hours of class in the morning, 3 hours of class at night) and working full time selling paintings at a tourist shop during the afternoon in between classes. Her grades are good and she likes her professors. She’s excited about school even though her studies are quite challenging.

She has also started to pay back her loan – and her family is just as excited, and pleased with her progress as Nardith is.

Remember, you can generate some good karma by lending to a student today!

Nardith and Stephen. We hope to fund Stephen's education down the road, as well!