The Government decided to increase credit loans for disadvantaged students

According to the new decision, the maximum loan amount is 4 million VND/month/student. Thus, compared to the old rate applied from December 1, 2019, the maximum loan amount for students increases by 1.5 million VND/month/student.

Decision amending Clause 2, Article 2 on loan beneficiaries. Accordingly, students are members of households belonging to one of the following categories: poor households according to the standards prescribed by law; near-poor households according to the standards prescribed by law; households with average living standards according to the standards prescribed by law.

Teachers of Xin Cai Primary School for Ethnic Minorities, Xin Cai Commune, Meo Vac District (Ha Giang) encourage students to go to school. (Source: VNA)

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, VBSP, customers and related parties will continue to perform according to their commitments, rights and responsibilities. obligations 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 level (2.5 million VND/month/student, students) has only met 49% of the tuition fees of the industry group with the highest tuition fees and 38.5% of the demand for study expenses for students (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 the Bank for Social Policies, at the time of issuance of Decision 157/2007/QD-TTg, the maximum loan amount per student was VND 800,000/month, meeting about 66% of the total cost of studying. students, students. As of 2019, the loan level of 2.5 million VND/student/student/month meets about 60% of study costs.

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 level 2, 5 million VND/month is difficult to ensure the attendance of students.

The Ministry of Finance said that the maximum loan amount needs to be adjusted to match the tuition fee increase schedule, the ability to mobilize capital of the Bank for Social Policies, the ability to compensate for the difference in interest rates and management fees. of the state budget.

It is necessary to raise the level of loans to support students and students to cover study costs, thereby contributing to stabilizing the lives and ideas of households and students. set..