Loan for studies

Name of the instrument - Local language: Fondo per il credito ai giovani
Name of the instrument - English translation: Loan for studies
Scheme ID: 256
Country: Italy
Reporting year: 2015
Type of instrument: Loan
Type of entry: Single instrument

Short description: College students or recent graduates can access the bank with State guarantee. The scheme aims to contribute to the full social inclusion of young generations, facilitating the educational path and the access to employment. The loans are cumulative up to a maximum amount of EUR 25 000 and paid in annual instalments ranging from EUR 3 000 to EUR 5 0000.
Short description of the related instruments: nap

Level of operation

National

Name of a part of the country

nap

Name of the region (for regional instruments)

nap

Name of the sector (for sectoral instruments)

nap

Relevance

Marginal scheme

Legal basis

Decree 2 July 2007art. 15, Clause 6, n. 81, then converted in Law 3 august 2007, n. 127 ; Decree of the Presidency of the Council of Ministers, 19 November 2010; Agreement among Ministry of youth (not existing anymore being absorbed in the Presidency of the Council of Ministers) and the Association of Banks – ABI 18 May 2011

Objective(s) and target(s)

Financial inclusion is now universally recognized as the primary factor for the achievement of full social inclusion. For young people it is of great importance the opportunity to access to bank credit in order to autonomously choose the educational path, and then enter the world of work. It is necessary to develop and enhance those policies that facilitate access to credit for college students and neo-graduates, in order to promote tertiary education and the development of professional and career paths.

Year of implementation

2007

Year of latest amendment

2010

Operation/management

Presidency if the Council of Ministers: planning and programming;
CONSAP: Agency for granting public insurance services: management and operation
ABI Italian Association of Banks: operation

Eligible group(s)

Individuals aged between 18 and 40 years and who are enrolled in a Bachelor or Master course (ISCED 6 and 7 – 2011)

Group(s) with preferential treatment

None

Education and training eligible

Bachelor (ISCED 6), Master (ISCED 7) Doctorate (ISCED 8); Foreign Languages (courses with at least 6 months lengths)

Source of financing and collection mechanism

Banks (current financing - providing loans)
State (loan guarantee)
individual (repayment from future income)

Financing formula and allocation mechanisms

Loans are cumulative up to a maximum amount of EUR 25 000 and paid in annual instalments ranging from EUR 3 000 to EUR 5 000.

The interest rate applied and the conditions of the loan are set by each bank within the parameters stated in the Agreement between the Department of Youth and the Association of Italian Banks (ABI).
The reimbursement of the funding is to be made in a period between three and fifteen years. The amortization of financing can’t however begin before the thirtieth month following the disbursement of the last installment of the loan.
Lenders commit themselves not to ask to beneficiaries additional guarantees in addition to the guarantee provided by the State.

Eligible costs

Specific arrangement

Volumes of funding

EUR 19 000 000 were provided for loans in 2015.

Organisation responsible for monitoring/evaluation

Presidency of the Council of Ministers – Department Youth and Civil Service.

Monitoring/evaluation reports available

Most relevant webpage - in English

Most relevant webpage - local language

http://www.gioventu.gov.it/menu-sx/per-studenti.aspx

Recent changes

With the recent Decree of 2010 also the doctorate abroad can be financed.

Sources

http://www.gioventu.gov.it/menu-sx/per-studenti.aspx