The incremental cost of adding an additional classroom to an existing school is as little as $5,000 (USD). Such a classroom can accommodate up to 40 additional students. A school proprietor is loaned the $5,000 in kind (in construction materials) in tranches until the construction is completed.
Proprietors are able to repay their loan to Edify’s partner lending institution because their students are paying tuition. The lending institution then loans this money out to another school proprietor, who is able to build another classroom and educate even more children. (See the graphic below for an illustration of how this sustainable cycle works.) This way, schools do not remain reliant on outside funding and parents hold school proprietors directly responsible for the quality of the education their children are receiving.
Edify’s goal is to finance the education of 1 million impoverished children over the next seven years. To achieve this extraordinary outcome, we will need to raise $20 million to make loans to 4,000 schools averaging 250 students each.
Edify depends on the financial generosity of individual donors and private foundations to finance its operations.
Parents hold school proprietors directly responsible
for the quality of the education their children are receiving.
