Loan

Advanced learner loans are based on contracts between the Secretary of State for Education, acting through the Education and Skills Funding Agency, and education and training providers. The contract allows education and training providers to receive loans payments from the Student Loans Company on behalf of learners (if they are 19 years of age or older) and loans bursary payments from the Education and Skills Funding Agency. The Advanced Learning Loan Scheme is a scheme designed to help learners cover the cost of college or training courses. The course must meet the eligible Level 3 or 4 courses. Repayment depends on income. Learners make repayments at 9% of annual earnings above GBP 21 000 (approx. EUR 24 946). If annual earnings fall below GBP 21 000 (approx. EUR 24 946), repayments stop and only restart when earnings increase to more than GBP 21 000 (approx. EUR 24 946). There is no opportunity to re-use the loan.

Higher Education students attending technical higher education courses, degrees, masters, or Ph.D. in Portugal can apply for the loan. The amount of the loan varies between EUR 1 000 and EUR 5 000 per year up to a maximum of EUR 30 000 (for a 6-year university programme). The loan is financed by the ESF, the Foundation for Science and Technology (FCT), and the banks that accepted to provide this service, but the scheme is managed by the SPGM (Sociedade de Investimento, S.A), a private organisation managing this credit line on behalf of the Portuguese Government. Banks are responsible for providing the loan, monitoring the accomplishment of the rules, and transferring the loan to students. The beneficiary does not have to pay for the credit during the period of its use and two years after that (grace period). The credit is paid back during a period of 6 to 10 years, to be negotiated between students and the bank. The current interest rate equates to the Euribor swap rate plus a maximum spread of 1.25% but can be reduced in the case of students benefitting from school scholarships or with good results at the University. The State acts as a guarantor, which eases the process of approval of the credit.

Undergraduate students have the right to receive an interest-free student loan from credit institutions of the Greek State. The eligibility criteria for receiving the loan include the academic performance of the student and their personal or family socioeconomic conditions. There is no age limit, nor are there specific rules applicable to all higher education institutions. Higher education institutions are autonomous and each university or even department within universities can decide if and how to implement aspects of it. In addition, an earlier law (Law 2413/1996) foresees that Greek students subscribed to post-graduate and doctoral studies in Greek Universities have the right to interest-free student loans. However, none of the legislation has been implemented in practice. A more recent law (Law 4701/2020) which foresees "easy loans" of up to EUR 25 000 for a range of target groups, including students, has not been implemented yet either.

Individuals currently enrolled at a state or state-recognised tertiary institution in Germany, who are not older than 44 years can apply for the loan. No preferential treatment is applied. The loan is provided by the KfW bank in Germany. The interest rate is generally variable. It is based on a certain reference interest (6-month EURIBOR) plus a contractually agreed premium. The interest rates are adjusted every six months.

Persons aged between 18 and 40 may apply for access to funding guaranteed by the Fund if they enrolled in tertiary education or language course leading to a certification (legally recognised in Italy; the course must last more than 6 months). No preferential treatment is applied. Tertiary education from Bachelor to Doctorate and language courses leading to a certification recognised by the State are considered eligible types of training. This is a general loan for study, and eligible costs are not provided in detail.

A Professional and Career Development Loan is a commercial bank loan to help learners pay for learning that leads to their employment. Only individuals who have been unemployed for at least three months before starting the course are eligible for this loan. The maximum amount that a learner can borrow with a Professional and Career Development Loan is GBP 10 000 (approx. EUR 11 879). Up to this limit, a learner can borrow 100 % of the course fee only if they have been registered as unemployed for at least three months before starting their course. If a learner has not been registered as unemployed for at least three months, they will only be able to borrow a maximum of 80 % of their course fees. While they are in learning, and for up to one month afterward, the Skills Funding Agency will pay the interest on the loan.

Adults can use this loan scheme which was introduced to support students in initial education to cover tuition fees in full-time higher education. The initiative is aimed at students who apply for studies in universities that adhered to the AGAUR agreement. No preferential treatment is applied. The loans are provided by private retail banks based on funds from the private capital market. The government provides a loan guarantee. There are two types of loans with the maximum amounts: EUR 7 000 (loan to fund fees for university studies) and EUR 30 000 (a loan for post-graduate studies, which may compensate also for living costs). Repayment rates are fixed (monthly rates). The interest rate is regulated by the State.

State loans and State-supported loans to students were introduced to support students in initial education to cover tuition fees in higher education and living costs during full-time education. The state covers administration costs (loans provided by the State), provides a loan guarantee (in case of default) and pays interest rates for specific target groups. The total amount of loans received by the borrower, excluding interest, may not exceed 385 basic social benefit amounts. The loan repayment term is 15 years. Loans are provided at variable interest rates: EURIBOR (euro interbank market interest rate calculated by the European Banking Federation) + bank margin set by the credit agreement. No preferential treatment is applied.

Adults can access a loan scheme introduced to support students in initial education to cover tuition fees in higher education and living costs during full-time education. Financial resources for student loans are determined by law through the state budget for the year. There is no maximum amount for the study loan - it can be as high as the study fee requested by the higher education institution. Students are able to apply for two types of loans with the government guarantee and favourable interest rates: 1) a study loan, which is intended to cover tuition fees; 2) a student loan for student subsistence expenses. The loan is disbursed every semester and directly transferred to the loan taker. The loan repayment starts 1 year after graduation. The maximum period over which the loan could be repaid is not set. The loan can be forgiven for a new parent or for persons working in the public sector. The interest rate of the loan cannot exceed 5% per annum. The payment of the periodic interest rate starts after graduation.

Adults can use a loan scheme introduced to support students in initial education to cover tuition fees in higher education and living costs during full-time education. Eligible education and training for adults include adult primary and secondary education (komvux), adult vocational secondary education (yrkesvux) as well as higher education and other post-secondary education. Students can choose the loan as an optional or additional component to a grant. The amount of financial aid depends on whether the individual is a full-time student or a part-time student.

The Student Loan Centre operates the system relying on the involvement of a tested and proven network of multiple partners. Raising the funds from the money and capital market, the student lending system has always operated with the State as the owner and according to the non-profit principle - in order to lend loans at the lowest possible cost. All higher education studies/degrees leading to a formal qualification are eligible. Eligible costs include either living costs (Student loan 1) or tuition fees (Student loan 2). Student loan 1 may be spent on anything freely (such as living costs). Student loan 2 is transferred directly from the Student loan centre to the higher education institution covering 100% of the tuition fees.

Adults can use a loan scheme introduced to support students in initial education to cover tuition fees in higher education and living costs during full-time education. The loans are provided by a specialised institution founded by the National Council of Slovak Republic (the Parliament); classified as non-state (but not private). It is a mortgage-type loan and repayment starts 2 months after the state final examination or after the loss of student status. Since June 2019, the Student Loan Fund introduced a new type of loan. The Stabilisation Loans of max. EUR 2 000 are granted to Slovak (or of an EU member state origin resident in Slovakia) students in tertiary education study programmes in Slovakia or abroad to cover study-related expenses. Support is provided only to students in tertiary education fields identified to be in high demand. In the case the graduate enters employment in Slovakia in the field of his study, the loan is repaid from his income tax (depending on the length of employment and the amount of the loan). Medical fields and occupations dominate among the identified. Other parameters of the Stabilisation Loans are the same as for the Student Loans (5-10 years of repayment period interrupted in the case of a study or a maternity leave). There is no limitation to re-use the loan.

To facilitate students' access to loans, a system of bank loans guaranteed by the government was introduced for all students of higher education up to 28 years to finance their studies. The guarantee mechanism is based on a guarantee fund. This fund supports, under conditions defined by convention, part of the risk taken by banks.The loan is granted only by the banks that are partners in the operation. The loan must be repaid with interest, but repayment can be deferred until the end of the studies. The State guarantees the loan, within the limit of a special budget voted on each year. If and when this budget is exhausted before the end of the year, the partner banks stop granting loans or require guarantees.

Finnish students can apply for a study grant from Kela to cover their living costs. Finnish students can also take up a study loan in order to cover their living costs. The cost-sharing element is a government guarantee for these student loans, which also allows banks to use lower interest rates. Student financial aid is available for full-time post-comprehensive school studies lasting at least 8 weeks at an upper secondary school, folk high school, vocational school or institution of higher education. Student aid is also available for studies abroad. No preferential treatment is applied. The amount of study grant depends on age, housing circumstances, marital status and education/school. The interest and other terms connected to the study loan are agreed upon between the bank and the student. The recommended period for payback of the loan is twice the duration of studies. The maximum repayment period is 30 years.

HBO or university students (ISCED 5-7) who are less than 30 years old can apply for a study loan, provided that the educational programmes lead to a national qualification (formal education). The education programme lasts more than 1 year and the education programme is fully accredited. The responsible authority of the loan is the Dienst Uitvoering Onderwijs (DUO), an agency of the Ministry of Education, Culture, and Science. The study loan can be used for different eligible costs (college fees, books, travel, living and subsistence costs, etc). The loan is expected to give the student full-time availability to study. There are no specific risk assessment criteria applied to individuals. The loan receivers (students) have to pay it back in a fixed period after graduation (e.g. starting 2 years after graduation and if their earning allows this). Up to the minimum wage level (approximately EUR 19 000; annually indexed) the students do not have to repay anything. A maximum of 4% of the income earned in excess of that level is repaid, and for a debt of EUR 21 000, the full monthly amount is paid from an income of approximately EUR 42 000. The interest rate on the student loan is determined each year by DUO and may vary per calendar year. The maximum amount of loan set is EUR 1 076 for 2020, with no variations depending on the type of education. The maximum period over which the loan has to be repaid is of 35 years, and there are no conditions for re-use.

An applicant meeting predetermined criteria (i.e. persons studying full-time or part-time for 6 months or more at post-secondary or tertiary level, including studies abroad) can apply for a student loan. The maximum amount of study loan is EUR 2 500 per year. The loan system is financed through public funds and private commercial banks. The loan is disbursed each calendar year and is directly transferred to the loan taker with no risk assessment applied. The interest rate of the loan is variable (according to Euribor fluctuations), however, it cannot exceed 5% for the borrower. If the interest rate exceeds 5%, the State pays the margin to the commercial lender. The interest rate applies to all borrowers. The payment period of the interest starts after or during graduation. The State compensates interest rate in cases if the borrower performs military service, or is a single parent with a child who is younger than three years old. The State also pays an interest rate for a resident physician until the completion of residency. The repayment of the loan starts 12 months after graduation or during studies. The maximum period over which the loan should be repaid is 20 years. The loan repayment can be forgiven for civil servants and employees of central or local government institutions or legal persons in public law (e.g. universities) who have been working there a minimum of 12 months and completed their studies before 1 July 2019; for persons who have a disability or takes care of her/his child having a disability.

Adults can use a loan scheme introduced to support students in initial education to cover tuition fees in higher education, living costs or any other costs during full-time education. The scheme is managed via private retail banks. The maximum amount depends on the bank and varies from EUR 2 000 up to EUR 6 300 with a fixed interest rate and free credit granting. The operation/management of the loan is under commercial banks that offer loans for students. Specific rules (i.e. repayment mechanism, interest rate, loan distribution, loan size) depend on the bank and the individual contract between the bank and the loan taker.

This training loan is available to the unemployed, job seekers, and employees aged 45+ registered in the district job centre. The loan is fully subsidized (zero interest rate and grace period) by the state (Labour Fund). Since Labour Fund is a public fund, in practice the State does not collect the interest rate from the learner until the loan is repaid. If a learner uses a loan for a purpose other than this specified in a contract or does not start or finish the training programme, the learner is obliged to pay the interest rate (which was up to 3.6% in 2020). The maximum amount of the loan is 400% of the average salary. The loan repayment starts immediately after graduation. The maximum period of the loan repayment is 18 months after completing the training. There is no loan forgiveness. There is no limitation to re-use the loan.

Individuals between 18 and 30 years who wish to study for a first or post-graduate degree or a distance learning course not available in Malta can apply for a loan between EUR 10 000 and EUR 30 000. Eligible students are granted a soft loan facility at favorable terms. Preference is given for courses in Aerospace, Health and Biotechnology, Digital Games Production, Environment, Agriculture and Marine Studies, Youth Work, Sport, Nature Conservation, The Arts, and Specialised Restoration. The maximum loan amount is EUR 30 000 in a total, while the minimum amount of EUR 10 000 for students. Directly after graduation students pay a rate of interest of 1% (lower than the standard rate of 4%) bank's Base Rate plus 1.75% per year, currently adding up to 4% per year. There is no limitation to re-use the grant.