Disadvantages of the current mechanism:

• higher education institutions without experience are forced to engage in business activities for the issuance and repayment of loans, which, according to current legislation, have the right to engage in banking institutions that have the appropriate licenses issued by the NBU, and qualified professionals in this field;
• to implement the proposed mechanism, higher education institutions should create special lending departments, which would deal with the issuance of loans, their repayment, track the career of graduates who received loans, change of place of work, etc., which requires additional funding;
• according to the current legislation, it is almost impossible to forcibly collect from the borrower a debt that is not secured by collateral.

In order to eliminate these shortcomings, it is proposed to finalize the Resolution of the Cabinet of Ministers of Ukraine No. 916 of June 16, 2003.

First, the provision of targeted soft loans should be carried out through an authorized state bank with an agreement between it and the borrower.

Second, loans to borrowers must be insured with a state insurance company with interest on the loan amount.

Third, after graduating from higher education and employment, the borrower of the target soft loan must renew the agreement with the authorized bank on the payment of interest on the loan agreement and repayment of the principal amount of debt from salary, as provided by citizens buying consumer goods on credit in the retail network.

The proposed improvements will actually allow to introduce the lending process into the legislative stream and ensure the repayment of loans provided by the state.

The analysis of the market of educational services in terms of the amount of tuition fees showed that a large number of HEIs set prices for tuition on the contract extremely low. Even a cursory glance suggests that it is impossible to train a competent specialist for an annual price equal to the minimum monthly wage. Thus, the educational process can be provided neither by qualified scientific and pedagogical staff, nor by the material and technical base. This approach allows financially barely retain management staff in the practical absence of the educational process.