To many, the cost of a 4-year or more college education is enormous.  In our country, the Philippines, it is possible to go through elementary and high school with practically no tuition cost in public schools.  Going to college or university is a problem because tuition needs to be paid unless a student is a full scholar.  It was nice when the college assurance plan companies surfaced in the early 1980s.  Parents could buy a plan on installment for 5 years.  When the beneficiary steps into college, the assurance company pays for all the school costs as long as the student finishes the course within the 4 or 5 year stipulation.  From one assurance company, it sprouted to several within a short time because it will take at least 5 years to almost 15 years before college tuitions need to be paid out by them.  With the right projections and investments college assurance plans was good business.

In the U.S., students who can not afford the cost of college and the accompanying expenses, they need to take out loans and/or seek employment.  Federal loans bear low interest rates and payable only after the student graduates.  There also grants like scholarships and private loans to augment the federal loans to cover whatever else might be needed by the school. 

In 2003 or later, the economy in the Philippines went bad in comparison to some time in 1996 or 1997. The largest college assurance plan company was having trouble paying the tuition of its so-called scholars (beneficiaries). The problem, the tuition cost was a lot more than what they projected and their investments were not yielding any better. Soon after many other college assurance plan companies started reviewing their books when the largest was put on receivership by the givernment. It was a painful blow to parents and to students who were in school then that depended totally on the assurance. My family was one among the unfortunate. Only moneyed parents were able to get their children comfortably through college. For those who graduate and owe the school, they don't get their diplomas and transcript of records that are a requirement when seeking employment. The schools want to get paid but deprive the indebted graduate to get a good employment. The assurance company could not even guaranty the school for and in behalf of the graduate from whom they took money from the parents during the earlier years.

Again as compared to the U.S., those who are affected by the economy worry only about repayment after they have finished the course or got out of school. If they are unemployed, forbearance or deferment is granted. In some instances for those employed, lower repayment terms can be arranged. In short, the private lending company protects and is considerate with their graduates.