Who is eligible for student loans in Vietnam in 2024?

Who is eligible for student loans in Vietnam in 2024?

According to Article 2 of Decision 157/2007/QD-TTg, amended by Clause 1, Article 1 of Decision 05/2022/QD-TTg, students in difficult circumstances who are studying at universities (or equivalent), colleges established and operating according to Vietnamese law, include:

- Orphaned students who have lost both parents or have lost either parent but the remaining parent is unable to work.

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

+ Poor households following the legal standard.

+ Near-poor households following the legal standard.

+ Households with an average living standard following the legal standard.

Who is eligible for student loans in Vietnam in 2024? (Image from the Internet)

What are the methods of student loans in Vietnam?

Based on Article 3 of Decision 157/2007/QD-TTg, the methods of student loans are as follows:

Loan Method:

1. Loans for students are made through the household. The household representative is the direct borrower and is responsible for repaying the Vietnam Bank for Social Policies. In cases where students are orphaned and have lost both parents or have lost either parent but the remaining parent is unable to work, they can borrow directly from the Vietnam Bank for Social Policies where the school is located.

2. The Vietnam Bank for Social Policies is responsible for providing loans to students.

Thus, student loan methods include:- Loans through the household.- Direct loans for students who have lost both parents or one parent with the remaining parent unable to work.

What is the maximum student loan amount per month in Vietnam?

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

Loan Amount:

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

2. The Vietnam Bank for Social Policies specifies the loan amount for students based on the tuition fees of each school and living expenses according to regions but not exceeding the stipulated maximum loan amount.

3. When the State's tuition policy changes and living expenses fluctuate, the Vietnam Bank for Social Policies, in agreement with the Minister of Finance, presents the Prime Minister of the Government of Vietnam with adjustments to the loan amount.

Thus, the maximum student loan amount is VND 4,000,000 per month per student. The specific loan amount for each student will follow the regulations of the Vietnam Bank for Social Policies based on the tuition fees of each school and living expenses according to regions but will not exceed the maximum loan amount of VND 4,000,000 per month per student.

What is the student loan term in Vietnam?

Based on Article 6 of Decision 157/2007/QD-TTg, the student loan term is specified as follows:

- The loan term is the period from the date the borrower starts receiving the loan until the full repayment date (principal and interest) as recorded in the credit contract. The loan term includes the disbursement period and the repayment period.

- The disbursement period is the period from the date the borrower receives the first loan installment until the student completes the course, including the period students are allowed to temporarily suspend studies and retain academic results (if any).

The disbursement period is divided into disbursement periods as stipulated by the Vietnam Bank for Social Policies or agreed upon with the borrower.

- The repayment period is the period from the date the borrower repays the first installment until the full repayment date (principal and interest).

For training programs lasting no more than one year, the maximum repayment period is twice the disbursement period. For other training programs, the maximum repayment period is equal to the disbursement period.

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

What are the loan file and procedures for student loans through households in Vietnam?

Based on Subsection 1, Section 2 of Guidance 2162A/NHCS-TD 2007, amended by Point a, Clause 3 of Official Dispatch 1485/NHCS-TDSV 2018, the loan file and procedures for student loans at the Vietnam Bank for Social Policies are as follows:

* Loan file:- Loan application cum capital use plan with the school's confirmation (original) or Admission Notice (original or certified copy or original for comparison or certified true copy).

* Loan procedure:

Step 1: The borrower writes a loan application with the school's confirmation or Admission Notice and submits it to the Savings and Credit Group (SCG).

Step 2: Upon receiving the borrower's application, the SCG convenes a meeting to review the loan, check the details on the loan application, and ensure compliance with the Government of Vietnam's loan policies. If the borrower is not already a member of the SCG, the current SCG in the village may admit the borrower as a new member or form a new SCG if eligible.

If there are only 1 to 4 new borrowers, they may be added to the existing SG even if it already has 50 members. Subsequently, a list of households applying for loans from the Vietnam Bank for Social Policies, along with loan applications and school confirmations or admission notices, is submitted to the Commune People's Committee for verification.

Step 3: After the Commune People's Committee's verification, the SCG submits the entire loan application to the Vietnam Bank for Social Policies for loan approval procedures.

Step 4: The Vietnam Bank for Social Policies, upon receiving the application from the SCG, designates an officer to verify the legality and validity of the loan file, which is then submitted to the Credit Section Head and the Director for loan approval. After approval, the Vietnam Bank for Social Policies issues a notification of the loan approval result to the Commune People's Committee.

Step 5: The Commune People's Committee informs the local political-social organization (the unit entrusted with the loan) and the SCG to notify the borrower to collect the loan at the commune transaction point or the Vietnam Bank for Social Policies's office.