Student loan has the same obligations as any other loan, so it is worth considering carefully. More and more students are using the already low-interest Student Loan. It is likely that the number of claimants will only increase as interest rates have fallen since July 1st. Nowadays, the number of borrowers has reached 380,000, and the amount of credit placed has exceeded HUF 305 billion.
Student Loan is a great help to students in their college and university studies. Unfortunately, not every student’s parents have enough monthly income to finance their children’s school. Many students try to work alongside their studies, but not everyone has the opportunity, or for other reasons.
Here are some important things to know
- How to apply : You do not need a certified income, no guarantor, no collateral to apply for a loan.
- You can get a loan: A student under 40 who is in state scholarship and self-study, whether full-time, evening, correspondence or distance learning, can take out a loan.
- Repayment: The Student Loan shall be repaid after the student has terminated his / her student status, but not later than at the age of 40. The amount of the installment is determined in proportion to the income.
- Prepayment Possible: As I mentioned, Student Loan is just like any other loan, so it is possible to prepay. It can be repaid at any time during the loan repayment period, unlimited and at no additional cost. The amount of the prepayment directly reduces the principal debt. Even so, Student Loan interest rates have been so low to provide financial support to students in need. This is a great help for students who are unable to finance some or all of their studies.
As of July 1st, interest rates on Student Loan1 and Student Loan2 have fallen!
Student Loan1 is a free-form loan and Student Loan2 is a tied-up loan.
Student Loan1’s interest rate fell to 2.30% from 3.35%, while Student Loan2’s interest rate was set at 3.45% instead of 3.9%, of which the interest rate charged to clients remains fixed at 2%. The Hungarian State will pay the excess interest in the form of an interest subsidy instead of the borrower.
In case of Student Loan1 a monthly amount of between 15 and 50 thousand HUF can be applied for, which the client can spend for freely determined purposes, while the maximum amount of the Student Loan2 that can be used exclusively for the training fee is the cost price announced for the given training.
More changes are expected from September!
As of September 6, 2017, the Student Loan Center will be able to sign a contract based on regulated electronic administration services with electronic signature. From October, Student Loan2 will be free of interest, and Student Loan1 will increase, according to which the maximum amount that can be withdrawn next year will be HUF 70,000.