Are sophomores in Vietnam allowed to applying for student loans?

Are sophomores in Vietnam allowed to applying for student loans?

Based on Article 2 of Decision 157/2007/QD-TTg as amended by Clause 1 Article 1 of Decision 05/2022/QD-TTg, the eligible subjects for loans are regulated as follows:

Eligible subjects for loans:

Students who face financial difficulties and are studying at universities (or equivalent), colleges, vocational secondary schools, and vocational training institutions established and operating in accordance with the laws of Vietnam, include:

1. Students who have lost both parents or only one parent, and the remaining parent is unable to work.

2. Students belonging to households under one of the following categories:

a) Poor households according to legal standards.

b) Near-poor households according to legal standards.

c) Households with average living standards according to legal standards.

Also, Article 4 of Decision 157/2007/QD-TTg stipulates as follows:

Loan conditions:

1. Students must live in a family that has legal residency at the locality where the loan is granted and must meet the standards stipulated in Article 2 of this Decision.

2. First-year students must have an admission letter or a certificate of acceptance from the school.

3. For sophomores and above, certification from the school confirming their attendance and no administrative penalties or higher for gambling, drug addiction, theft, or smuggling.

According to the regulations, the subjects eligible for student loans include:

- Students who have lost both parents or only one parent, and the remaining parent is unable to work;

- Students belonging to households under one of the following categories:

+ Poor households according to legal standards.

+ Near-poor households according to legal standards.

+ Households with average living standards according to legal standards.

Thus, sophomores are eligible for student loans if they belong to one of these categories and have certification from the school confirming their attendance and no administrative penalties or higher for gambling, drug addiction, theft, or smuggling.

What are the methods for sophomores to apply for loans in Vietnam?

Based on Article 3 of Decision 157/2007/QD-TTg which provides for the lending methods as follows:

Lending methods:

1. Lending to students is carried out through their families. The family representative will directly apply for the loan and be responsible for repaying the Social Policy Bank. In cases where the student has lost both parents or only one parent, and the remaining parent is unable to work, they can apply directly for a loan at the Social Policy Bank where the school is located.

2. The Social Policy Bank will manage loans for students.

Thus, sophomores can apply for loans through two methods:

- Through their families;

- Directly applying for loans in cases where the student has lost both parents or only one parent, and the remaining parent is unable to work.

What is the amount of loan are sophomores allowed to borrow in Vietnam?

Based on Article 5 of Decision 157/2007/QD-TTg as amended by Clause 2 Article 1 of Decision 05/2022/QD-TTg, which regulates the loan amount:

Loan amount:

1. The maximum loan amount is 4,000,000 VND/month/student.

2. The Social Policy Bank will determine the specific loan amount for each student based on the tuition fee of their school and living expenses by region, but not exceeding the amount stipulated in Clause 1 of this Article.

3. When the State's tuition fee policy changes and living expenses fluctuate, the Social Policy Bank will coordinate with the Minister of Finance to submit to the Prime Minister of Vietnam for consideration and adjustment of the loan amount.

Thus, sophomores can borrow up to 4,000,000 VND/month/student.

The Social Policy Bank will determine the specific loan amount for each student based on their tuition fee of their school and living expenses by region but not exceeding 4,000,000 VND/month.

What is the interest rate for student loans in Vietnam?

Based on Article 7 of Decision 157/2007/QD-TTg, which provides for the loan interest rates:

Loan interest rate:

1. The preferential loan interest rate for students is 0.5%/month.

2. The overdue debt interest rate is 130% of the loan interest rate.

The interest rate stipulated in Clause 1 Article 7 of Decision 157/2007/QD-TTg is adjusted by Clause 2 Article 1 of Decision 853/QD-TTg of 2011 as follows:

...

2. Adjust the loan interest rate stipulated in Clause 1, Article 7, Decision No. 157/2007/QD-TTg dated September 27, 2007, of the Prime Minister of Vietnam concerning credit for students as follows: The preferential loan interest rate for students is 0.65%/month.

...

Thus, the interest rate for student loans is 0.65%/month.