Proposed Islamic Educational Loan-backed Securities for Quality Life of University Graduates in Malaysia

This research investigates a structure for student loans’ securitization, identifies the potential of the asset backed securitization processes and proposed an Islamic framework of securitization. The findings of the study are expected to benefit the university students for cheaper cost of funding their studies and upon graduation they will be able to repay their monthly subsidized educational loans that may improve their quality life as young employees. Likewise, the Malaysian government will benefit for its continuous source of education funding without scarifying its limited funds for public projects that reflects the life of the urban environment among Malaysian university graduates.