The State-Guaranteed Loan (CAE) system is undergoing a structural crisis that highlights how higher education in Chile has been subordinated to financial interests. By the end of 2024, official figures show that 966,000 people are in the repayment phase of this instrument, 511,000 of whom are facing seized collateral or accelerated debt collection.
This wave of defaults affects 42% of the total debt portfolio. Analysis suggests the scale of the problem is not a result of individual behavior, but rather the collapse of an institutional framework where more than half of borrowers end up trapped in delinquency.
Fiscal pressure and legal action
The General Treasury of the Republic (TGR) has launched collection actions against more than 550,000 debtors. For those earning monthly incomes exceeding $5 million, the State has directly enabled legal proceedings to ensure the recovery of funds.
The impact of these collection measures has been immediate. The Ministry of Finance reported that daily revenue jumped from $30 million to $200 million following the tightening of official collection policies.
The financing model, based on a rate of UF + 2%, imposes a persistent financial burden on students. While the nominal rate appears low, the debt is adjusted for inflation, making it severely difficult to repay in the event of default—primarily affecting those with precarious employment histories.
The collection policy implemented since April of this year reflects a management strategy focused on fund recovery through administrative pressure. This process transforms access to knowledge into a financial burden that constrains the adult lives and personal aspirations of generations of students.
