What are the conditions for first-year students to get student loans in Vietnam?

What are the conditions for first-year students to get student loans in Vietnam?

As stipulated in Article 4 Decision 157/2007/QD-TTg, the conditions for student loans are as follows:

Loan conditions:

1. Students living in households residing legally at the locality where the loan is provided and meeting the standards stipulated in Article 2 of this Decision.

2. For first-year students, a notice of acceptance or confirmation of admission from the school is required.

3. For students from the second year onwards, a confirmation from the school stating that the student is attending the school and is not subject to administrative penalties or higher for actions such as gambling, drug addiction, theft, smuggling.

Thus, first-year students can obtain student loans if they meet the following conditions:

- Students living in households residing legally at the locality where the loan is provided and meeting the stipulated standards;

- Have a notice of acceptance or confirmation of admission from the school.

What are the conditions for first-year students to get student loans in Vietnam? (Image from Internet)

Which students are eligible for student loans in Vietnam?

Pursuant to Article 2 Decision 157/2007/QD-TTg, as amended by Clause 1 Article 1 Decision 05/2022/QD-TTg, the eligible persons for student loans are:

Students with difficult circumstances studying at universities (or equivalent), colleges established and operating in accordance with Vietnamese law, include:

- Students who are orphans of both parents or orphans of one parent and the remaining parent is unable to work.

- Students who are members of households belonging to one of the following categories:

+ Poor households according to the law's standards.

+ Near-poor households according to the law's standards.

+ Households with average living standards according to the law's standards.

How much can students borrow for loans in Vietnam?

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

Loan amount:

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

2. The Vietnam Bank for Social Policies shall specify the loan amount for students based on tuition fees of each school and living expenses according to regions but not exceeding the loan amount prescribed in Clause 1 of this Article.

3. When the state's tuition fee policy changes and living expenses fluctuate, the Vietnam Bank for Social Policies shall consult with the Minister of Finance to propose to the Prime Minister of the Government of Vietnam to adjust the loan amount.

Thus, students can borrow a maximum of 4,000,000 VND/month/student.

The specific loan amount for each student will be regulated by the Vietnam Bank for Social Policies based on tuition fees of each school and living expenses according to regions, but not exceeding the maximum loan amount of 4,000,000 VND/month/student.

What is the loan term for student loans in Vietnam?

According to Article 6 Decision 157/2007/QD-TTg, the loan term for student loans is stipulated as follows:

- The loan term is the period from the date the loan recipient starts receiving the loan to the date the principal and interest are fully repaid, as recorded in the credit contract. The loan term includes the disbursement term and the repayment term.

- The disbursement term is from the day the loan recipient receives the first disbursement to the day the student completes the course, including allowed leave of absence and retaining academic results (if any).

The disbursement term is divided into disbursement periods as stipulated or agreed by the Vietnam Bank for Social Policies with the loan recipient.

- The repayment term is from the first repayment date to the date the debt (principal and interest) is fully repaid.

For programs with a training period not exceeding one year, the maximum repayment term is twice the disbursement term. For other programs, the maximum repayment term is equal to the disbursement term.

The repayment term is divided into repayment periods as stipulated by the Vietnam Bank for Social Policies.

What is the interest rate for student loans in Vietnam?

According to Article 7 Decision 157/2007/QD-TTg, the interest rate is stipulated as follows:

Loan interest rate:

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

2. Overdue debt interest rate is calculated at 130% of the loan interest rate.

In Article 1 Decision 750/QD-TTg of 2015 it is stipulated as follows:

Adjusting the interest rate for policy credit programs at the Vietnam Bank for Social Policies as follows:

1. The loan interest rate for poor households, students, policy subjects working abroad for a definite period, and the National Employment Fund is 6.6%/year (0.55%/month). This regulation replaces Decision No. 872/QD-TTg dated June 6, 2014, of the Prime Minister of the Government of Vietnam adjusting the interest rate for policy credit programs at the Vietnam Bank for Social Policies.

2. The loan interest rate for the Rural Clean Water and Sanitation Program, and production and business household loans in difficult regions is 9.0%/year (0.75%/month). This regulation replaces Clause 2 and Clause 3, Article 1, Decision No. 1826/QD-TTg dated October 9, 2013, of the Prime Minister of the Government of Vietnam adjusting the interest rate for policy credit programs at the Vietnam Bank for Social Policies.

Thus, the interest rate for student loans is 6.6%/year (equivalent to 0.55%/month).