ACERS (Accounting Certification Exam Remuneration System): Using Securitization to Solve a Persistent Business Education Funding Problem
Gregory L. Krippel, Robert B. Burney

While student loans are available to support the accounting student while enrolled in an accounting degree program, there exists no formal system of financial support for the accounting graduate during a post-graduation period of intensive certification exam preparation. Current practice usually entails recent accounting graduates taking employment, and then, usually with the blessing of the employer, studying after-hours for the certification exam. Naturally, this arrangement would be expected to reduce the probability of the candidate passing the exam and extend the time required to pass all components of the exam relative to full-time study Loan Securitization is the process whereby loans with similar characteristics are pooled and then used to back more easily traded securities. The advantage of this approach is the transformation of relatively illiquid claims into a format which can be traded in the more liquid capital markets. Thus, securitization is essentially a method of facilitating the interaction between providers and users of capital. Loan securitization has been used in many different settings. This paper proposes the use of loan securitization as an approach to channeling funds to graduates in transition who are attempting to pass professional certification exams.

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