In two small offices on the ninth floor of the LDS Church office building, a program that church leaders believe will sculpt the future of the faith internationally is fast fulfilling its promise to thousands of young Latter-day Saints.

As leaders gear up for this weekend's annual general conference, a new department of The Church of Jesus Christ of Latter-day Saints — the Perpetual Education Fund — enters its second year.

First announced by President Gordon B. Hinckley during last April's conference, the program is already larger than many long-established private educational loan funds that operate in the Third World. More than 2,000 young adults in Mexico, Peru, Chile, Brazil and the Philippines have already received loans from the fund, which was just a concept only a year ago.

Elder John K. Carmack, who was tapped by President Hinckley to administer the fund, told the Deseret News this week that "hundreds and hundreds" of loan applications are being processed and by the end of 2002, the number of loans will have grown to between 5,000 and 6,000. "It will double that the next year, and we should have 18,000 to 20,000" by the end of 2004, he said.

As impressive as the fund's growth projections look now, Elder Carmack said President Hinckley told the fund's board of directors recently that "we need to look ahead a generation to see the fruits of this effort. They will be tremendous. We will develop a body of successful Saints, members of stature, wonderful leaders of substance, ability and faith.

"This will change the face of the church, so keep working. Work your heads off!"

Despite huge growth projections, the church's newest department has added virtually no new overhead for administration. The day-to-day operations are administered through Elder Carmack's office with help from volunteers in Salt Lake City, and in foreign nations through the LDS Institute program. Institute personnel pair with the church's employment resource directors in their area to help applicants choose a career and a school, plan their finances, and fill out the loan application.

President Hinckley chairs a board of directors of other general authorities who oversee the program.

Donors include both church members and others who like the fact that their donations go directly to help the poor, rather than having a large percentage chewed up with administrative costs, Elder Carmack said. And because the seed money is never expended, donations become a self-perpetuating gift.

Though the church will not reveal the amount of total donations, literature provided by the church says "many thousands of generous donors have contributed millions of dollars" to the fund since it was first announced.

"There's been no big fund-raising program out there. We haven't needed it," he said. "This program is here on a fundamental level and this is here to stay."

"There are so many people of (financial) substance in the world now," Elder Carmack said. "I won't mention any names, but my phone has rung with people interested in contributing who could finance the whole thing themselves and they want to help."

Donors include both church members and others, he said, recalling a recent donation from a man whose letter said he is not LDS but he was donating on behalf of himself and two friends who support the program's mission.

"In fact, I just answered the phone call of a woman whose husband has died, and rather than sending flowers, she designated this program as the place she wanted people to donate funds."

Loan applicants must be 18-30 years of age, active in the LDS Institute program, living and working in the area they will attend school, and willing to take on the terms of the loan repayment, which begins in small increments on the principal soon after participants start school. Three percent interest is charged, along with a small "inflation factor" set by the church.

Most students who apply are returned missionaries, Elder Carmack said, but missionary service is not mandatory. At this point, approximately 60 to 65 percent of loans have gone to men.

As word of the program has spread, enrollment in the LDS Institute program has grown proportionally in areas where loans are being offered, though no firm numbers are available, Elder Carmack said.

Based on the same principles that brought early LDS converts to Utah in the mid-1800s through Brigham Young's Perpetual Emigrating Fund, the goals of the new program mirror many of its predecessor's objectives, including building a corps of active Latter-day Saints and leadership, Elder Carmack said.

President Hinckley has repeatedly said that the church's greatest challenge is its explosive growth, much of it in poverty-stricken areas where people have traditionally had little hope of rising out of poverty.

The loan program is a direct answer to such challenges, Elder Carmack said, noting that without opportunity for education or breaking the poverty cycle, few members have the time to serve in voluntary church positions. Thus, leadership for the growing congregations of converts is in short supply.

As the number of foreign converts has burgeoned over the past several years, families in foreign nations have sent thousands of their young men and women abroad to serve as missionaries, only to have them return home to the same poor conditions they left behind. Depressed at the lack of opportunity for themselves after experiencing a different standard of living, some found themselves slipping again into poverty with no way out.

As he announced the program last year, President Hinckley emphasized the fund's two-fold purpose: to provide a "hand up" to young people in need and at the same time create the opportunity for future leadership among those whose skills will provide the kind of income that allows time for family life, community involvement and church service.

According to brochures that explain the program, loan applications are forwarded to church headquarters, where a committee decides who receives loans and the amount to be funded. Loans are "usually managed by local banks or other financial institutions" and money is most often used for vocational or technical training that can be completed in two years or less. Some participants may qualify for four years of funding, depending on the course of study. Money is forwarded directly from the financial institution to the school or training program to be used for tuition, fees, books and supplies.

Additional loans will become available in new areas as the program expands and more funds become available.

E-MAIL: carrie@desnews.com