Leo S. Rowe Fund

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Executive Summary:

The Rowe Fund (www.oas.org/rowe) is the student loan program of the General Secretariat of the Organization of American States (the GS/OAS). This trust fund was established in 1948 for the purpose of providing financial assistance in the form of student loans to citizens of Latin American and Caribbean member Countries of the OAS, who are studying or wish to pursue studies in the United States. It also provides loans to OAS staff members under specified conditions. The Fund’s endowment has been entrusted to the Permanent Council since 1948 and is administered by a Committee comprising representatives of four member states selected by the Permanent Council, plus the Secretary General.

The original legacy of Dr. Rowe has gradually grown over the years from the initial endowment of $623,605 (equivalent to $5.0 million, at 2008 prices) to $14.5 million as of December 2007; however, due to the recent economic crisis, the last quarter of 2008 experienced the loss of 21.2 percent of the Fund's net assets. Notwithstanding, the Rowe Fund has manages to raise the level of individual loans while maintaining the interest-free policy thanks to an exemplary record of reimbursement of loans and a portfolio of prudent investments.

In 2008, the Rowe Fund celebrated its 60^th anniversary with a resolution (CP/Doc. 4338/08) adopted by the Permanent Council emphasizing the contributions made by the Fund for sixty years and the request to continue providing the Fund with the means it needs to fulfill its purposes.

As part of raising awareness about the importance of the program during its sixty years of existence, the Fund has compiled information rendered by ex-beneficiaries about their major contribution to their countries’ development and what has acquiring an education in a university in the United States meant for their own professional development.

In terms of the administration of the loans, an area of steady improvement has been that of faster recovery of outstanding loans through enhanced in-house collection mechanisms by which loans in arrears have reached for the first time in the Fund’s history a one-digit figure (6.3%). Also, by closely monitoring the whereabouts of our beneficiaries, the Rowe Fund has identified that 43.6 percent of borrowers have returned to their country of origin within a year of completion of their studies in the US.

As a general rule, Rowe Fund loans have been destined primarily for master’s degree studies; this is true for both genders. During the biennium, 64.3 percent of the total loan amount awarded has been to students seeking a master’s degree respectively. The Rowe Fund also serves a population between the ages of 26 and 30 years-old, where the most popular fields of study for Rowe Fund beneficiaries continue to be business and management, social sciences, and legal studies, which combined represent 66.1 percent of all loans granted.

Student loan programs, such as the Rowe Fund, have a high social component that benefits not only the individual and the society, but also universities. In sum, a main challenge ahead is balancing the goals of the Rowe Fund with the desire to ensure its long-term viability.

1889 F. St N.W., (619), Washington, DC 20006