Kiva conducts regular, ongoing monitoring of all Lending Partners, but only posts status updates here in response to relevant, major changes at the partner.

Status update — February 3. 2015
Given upcoming regulations related to Chile's education system, Kiva has decided to move Lumni Chile to Inactive status until we have better clarity on how these new regulations might affect their business model. In Inactive status, Lumni Chile is no longer fundraising loans on Kiva, though Kiva fully expects the partner to continue to send repayments owed to Kiva lenders for as long as the partner has an outstanding balance. Kiva and Lumni Chile may chose to renew their partnership in the near future if conditions allow Kiva lenders to support Lumni's students. 

Partner description:
Lumni is a lending organization in Chile that helps students from low-income families pay their tuition through future income contracts. Founded in 2003, the organization is a pioneer in the field of human capital financing in Chile, and now also operates in Colombia, Mexico, Peru, and the United States. To date, it has financed nearly 2,000 students to pursue higher education -- nearly all from low-income backgrounds.

In Chile, only 40% of the eligible student population is able to access higher education -- compared to 80% in developed countries. One of the main barriers to education is the limited access to financing, either due to the cost of borrowing or requirements like collateral and guarantors. While government subsidies exist, they are reserved for certain segments of the population, and many students are left out. Kiva lenders’ funds help the organization support even more students from low-income backgrounds to pursue higher education in Chile.

A unique lending approach:
Many students in Chile are in need of financing, sometimes unexpectedly. For example, the death of a family’s income earner can jeopardize tuition payments. Sometimes school fees are higher than anticipated. Not all of these students can access regular loans. In these circumstances, Lumni enables students to continue their studies without burdensome debt payments or putting up collateral, but rather by pledging a percentage of their future income. The loan, in the form of tuition payments, is made by Lumni directly to the university, so there is no risk of a student losing or misusing funds.