A Blockchain-Based Crowdsourcing Loan Platform for Funding Higher Education in Developing Countries

Abstract

In developing countries, funding is a significant obstacle to receiving higher education. Brilliant but needy students cannot complete their studies since their parents are unemployed and their countries’ economies are poor. As a result, the students’ talents are not harnessed to their full potential. In order to help students obtain higher education and harness their full potential, governments provide student loans to students in higher education. The government provides loans to students through the ministry of education. The students pay back the loan with interest when they start working. Governments have been the sole funders of student loans. The emergence of COVID-19 and the Russia-Ukraine war have resulted in a global economic crisis. Because of the global economic crisis, the government’s spending has increased. In order to help reduce the burden of government and thereby reduce spending, we intend to revolutionize the student loan program through blockchain and crowdsourcing. This work presents a blockchain-based crowdsourcing decentralized loan platform where investors will be brought on board to provide funds for students in higher education. The platform will allow students to apply for loans from investors through registered financial institutions. The students will pay back the loans with interest when they enter the workforce. The proposed platform will allow students to fund their education, investors will get interest on the money they invest, and governments can channel the money they put into student loan programs into other avenues. We perform a thorough security analysis and back the efficiency of our work with numerical results.

Keywords

• Blockchain
• crowdsourcing
• higher education
• smart contracts
• student loans