Discounts, subsidies, exemptions: Students will get a bigger student loan!
Changes in student loans have been in force since the new academic year (2015/2016 ) when the Minister of Education and Higher Education (MEiSW) issued an appropriate regulation at the end of September (Journal of Laws 2015 item . 1499).
It indicates that students applying for a loan, apart from the basic monthly tranche (600 USD), will also be able to choose a larger amount (800 USD/month).
Very low-interest rates will continue to apply
This change is beneficial for students because a higher student loan also operates on preferential terms. Very low-interest rates will continue to apply, and selected students will receive part or all debt cancellation.
The recent ordinance of the Minister of Education and Higher Education also says that students receiving a lower tranche (600 USD/month) may request an increase of this amount to 800 USD
It is worth mentioning that the other student loan rules remain unchanged in the 2015/2016 academic year. Financial support will still be available to students and post-graduate students of universities who started their studies before the age of 25. In
December 2015, MEiSW determined the maximum income per person in the family of a student applying for financial assistance. Previously, this limit was USD 2,500 net.
However, it is important to remember that applicants from the least affluent families have priority. Such students can also count on a loan guarantee. Good Finance Bank guarantees 100% debt to persons who:
- were completely deprived of parental care
- in the family, they have income per person not exceeding USD 600 net
- previously they were placed in a foster family, family care, educational, socialization or resocialization institution
If the monthly income per person in a student’s family is from USD 600 net to USD 1000 net, 70% of the loan is guaranteed. Good Finance Bank charges a commission of 1.50% for its guarantee.
Persons without a total GFB guarantee will have to present, for example, prisoners. It is worth knowing that the Agency for Restructuring and Modernization of Agriculture provides additional guarantees for students coming from rural areas. Such guarantees amount to 100% of the loan if the net family income per month does not exceed USD 600 / person.
The student loan is paid out for 5 months of each semester
After the bank’s positive decision, the student loan is paid out for 5 months of each semester. The payback period for repayable assistance, however, does not exceed six years (first and second cycle studies) and four years (third cycle studies).
The payment of the monthly tranches is continued if the student presents a valid student ID to the bank by 31 March and 31 October each year. The student loan repayment begins no later than two years after graduation.
The repayment period is twice as long as the number of tranches received. This means that a person who has been taking a student loan for 4 years (8 semesters after 5 months) will have to pay 80 installments.
The amount of monthly payments is USD 300 + interest (with a tranche of USD 600 / month) or USD 400 + interest (with a tranche of USD 800 / month).
20% of the debt may be redeemed by persons who completed their studies in a 5% group of graduates with the highest average grades.
It is also worth mentioning that there is a possibility of total or partial debt cancellation due to the difficult life situation of the graduate or permanent loss of ability to work.
An additional preference is to reduce installments for six months (a reduction to 20% of the debtor’s average income). In random situations (e.g. accident, illness) you can also apply for suspension of repayment for one year.
A student should submit an application at one of four banks …
In the current academic year (2015/2016), complete student loan applications must be submitted by November 15. The documents are accepted by commercial banks that have signed the relevant contract with GFB. Such institutions deal with the payment of credit from its own funds and its ongoing servicing.
Currently, four leading banks offer student loans: Each of these institutions sets different commissions and fees (e.g. for granting a loan and its extension).
Irrespective of the bank, the interest paid by the student will be the same. Student loan applications can also be filed at small cooperative banks, which belong to the BPS and SGB groups.
A person applying for a student loan, together with an appropriate application, must prepare a certificate of completion of studies and documents confirming the income of the family and of the possible prisoner. Sometimes a bank will also have additional formal requirements.