Student loan

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Name of the instrument - Local language
Diákhitel
Name of the instrument - English translation
Student loan
Scheme ID
105
Country
Hungary
Reporting year
2020
Type of instrument
Loan
Sub-type of instrument
Loan for HE expanded to adults
Type of entry
Single instrument
Short description

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.

Level of operation
National
Name of a part of the country
Not applicable
Name of the region (for regional instruments)
Not applicable
Name of the sector (for sectoral instruments)
Not applicable
Relevance
Key instrument
Government Decree 1 of 2012 on the Student Loan Scheme and Act CCIV of 2011 on National Higher Education
Objective(s) and target(s)
To create the opportunity for students admitted to universities and colleges to study and pursue their studies regardless of their financial situation.
Year of implementation
2001
Operation/management
The Student Loan Centre operates the system relying on the involvement of a tested and proven network of multiple partners.
Eligible group(s)
Students enrolled in a higher education study/degrees leading to a formal qualification.
Group(s) with preferential treatment
No preferential treatment
Education and training eligible
All higher education studies/degrees leading to a formal qualification are eligible.
Source of financing and collection mechanism
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. Financing actors: Hungarian State, European Investment Bank, Hungarian Development Bank, Budapest Stock Exchange, Bond distributors, and other partners (eg. banks, stockholders etc.).
Financing formula and allocation mechanisms
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.
Eligible costs
Eligible costs include either living costs (Student loan 1) or tuition fees (Student loan 2).
Volumes of funding
The maximum amount of Student loan 1: HUF 150 000 (approx. EUR 415) /month; (HUF 750 000 (EUR 2 077)/semester). Student loan 2: no upper limit, the amount depends on the cost of education (tuition fee)
Beneficiaries/take up
2019: student loan 1 for the age group >25 years: approx EUR 11 012 000. Student loan 2 for the age group >25 years: approx. EUR 11 906 000.
Organisation responsible for monitoring/evaluation
Not available
Most relevant webpage - in English
Not available
Most relevant webpage - local language
http://www.diakhitel.hu/
Recent changes

To help students who may have lost their job or have difficulties in paying their studies.

Sources
Webpage of Student Loan Centre http://www.diakhitel.hu/en/
Annual reports of Student Loan Centre https://www.diakhitel.hu/diakhitel-kozpont/sajtoszoba/kiadvanyok.html
Cedefop (2012): Loans for vocational education and training in Europe. www.cedefop.europa.eu/files/5520_en.pdf
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