Leo S. Rowe Fund

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Executive Summary:

The Rowe Fund is the student loan program of the General Secretariat of the OAS (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, and 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 2009 prices) to $13.4 million as of December 2009. Due to the 2008 economic crisis, the Fund experienced the loss of 22.0 percent of the Fund's net assets from $14.5 million in 2007 to $11.3 million as of December 2008. Notwithstanding, the Rowe Fund has managed to raise the level of individual loans while maintaining the interest-free policy thanks to an exemplary record of loan reimbursements 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 the GS/OAS 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 acquiring an education in a university in the United States has meant for their own professional development.

With regards to the administration of the loans, an area of steady improvement has been that of faster recovery rates 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 of 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 one year of completing of their studies in the US.

As a general rule, Rowe Fund loans have been destined primarily for beneficiaries of both genders enrolled in master’s degree studies. During 2009, 64.3 percent of the total loan amount awarded has been to students seeking a master’s degree. The Rowe Fund also serves a population between the ages of 26 and 30 years-old, in which the most popular fields of study for Rowe Fund beneficiaries continue to be Business and Management, Social Sciences, and Legal Studies. When combined, these top studies 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 the universities. In sum, a main challenge ahead is balancing the goals of the Rowe Fund with the desire to ensure its long-term viability.

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