At the April 2001 general conference, President Gordon B. Hinckley announced a "bold initiative" to help youth in developing areas "step out of the cycle of poverty." The Perpetual Education Fund:

Participants are ambitious young men or women who are:

• 18–30 years of age.
• Married or single.
• Worthy and active in the Church.
• Seeking education that leads to a better job or self-employment but lack the means to do so.
• Living, working, and attending school in countries approved for participation in the program.
• Enrolled in institute.
• Willing to work and use their own money to pay as much of the cost of education as possible.
• Committed to repay the loan so others may benefit.

Young people must be enrolled in institute to participate. Interested institute students should talk to their institute director, who will help them:

• Complete a short career-training course.
• Choose a viable career.
• Select an appropriate school.
• Organize their finances.

Usually loans are used to pay for vocational or technical training completed in two years or less. Participants may qualify for up to four years, depending upon the course of study. Loans are typically used only for:

• Tuition.
• Books and fees.

Progress reports are required twice each year to verify effort and attendance at school, worthiness, activity in church and institute, and repayment integrity. Other requirements include the following:

• Soon after they start school, participants begin to make small monthly payments (about $5) to the bank.
• Larger payments are begun soon after graduation for a period of 2–8 years.
• A small amount of interest (3% plus an inflation factor) is charged to the loan.
• Participants strive to repay the loan as soon as possible to bless others who need help.
• In the event of a significant personal challenge, loan payments may be deferred or adjusted.

Typically loans are arranged between the young person and the local bank or financial institution. This has several advantages:

• Working with a bank, participants develop good money habits.
• In turn, the bank helps participants stay current with payments and provides answers to questions and concerns.
• Participants thus become trusted members of the community, which opens the door for future opportunities.

All money donated to the Perpetual Education Fund is used to provide educational loans. None is used for administrative costs. Full-time administration is provided by Church leaders who donate their time and expertise. Donations to the fund are added to the fund's corpus, which is invested to balance long-term returns with market risks. Earnings from the corpus are the primary source of loans to qualified students.

• Since the program was announced, many thousands of generous donors have contributed millions of dollars to the Perpetual Education Fund. Already thousands of applications have been received, and many young people are already well on their way to completing an education that will afford them a greater opportunity. The program has been made available in several countries. The worldwide need is enormous, and expansion to more countries will occur as more funds become available.

Institute students who are living, working, and going to school in these countries can apply for a loan:

• Bolivia
• Brazil
• Chile
• Mexico
• Peru
• Philippines

As funds become available, loans will be provided in other countries.