Increase student loans to 4 million VND/month

Deputy Prime Minister Le Minh Khai has just signed Decision No. 5/2022/QD-TTg amending and supplementing a number of articles of the Prime Minister’s Decision No. 157/2007/QD-TTg dated September 27, 2007 credit for students. Accordingly, the maximum loan amount is 4 million VND/month/HSSV. Thus, compared to the old rate applied from December 1, 2019, the maximum loan amount for students increased by 1.5 million VND/month/student.

The Decision also amends Clause 2, Article 2 on loan beneficiaries: The student, pupil is a member of a household belonging to one of the following categories:

1- Poor households according to the standards prescribed by law.

2- Near-poor households according to the standards prescribed by law.

3- Households have an average standard of living according to the standards prescribed by law.

The Decision also amends Clause 2, Article 9 on repayment of loan principal and interest. Specifically, from the date the student finishes the 12-month course as prescribed, the borrower must pay the loan principal and interest for the first time. Borrowers can repay their loans early without paying interest on early repayment.

For credit loan contracts signed before May 19, 2022, the Bank for Social Policies (VBSP), customers and related parties will continue to perform according to their commitments, rights and obligations. term and responsibilities stated in the signed contract. The above maximum loan amount is applied to new disbursements from May 19, 2022.

According to the assessment of the Ministry of Education and Training, in terms of current tuition fees (according to Decree No. 86/2015/ND-CP), the current loan rate (2.5 million VND/month/HSSV) is new. only meet 49% of the tuition fees of the group with the highest tuition fees and 38.5% of the needs of students’ study expenses (tuition and living expenses). The cost of studying for a student is about 6.5 million VND/month to 9.5 million VND/month (calculated with the highest tuition rate).

According to VBSP, at the time of issuance of Decision 157/2007/QD-TTg, the maximum loan amount for one student was 800,000 VND/month, meeting about 66% of the total study expenses of students. As of 2019, the loan level of 2.5 million VND/HSSV/month meets about 60% of the study cost. However, up to now, the current loan level only meets 37% of the total study expenses of students, plus the cost of living continues to increase, the current loan amount is 2.5 million VND/ difficult month to ensure student attendance.

The Ministry of Finance said that the maximum loan amount needs to be adjusted to match the schedule of tuition increases, the VBSP’s ability to mobilize capital, the ability to compensate the interest rate difference and the management fee of the state budget. . It is necessary to increase the level of loans to support students to cover their study costs, thereby contributing to stabilizing the life and ideology of households and students, and improving the people’s intellectual level.

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