Can students who do not belong to poor or near-poor households in Vietnam get a loan for study purposes?

Can students who do not belong to poor or near-poor households in Vietnam get a loan for study purposes?

According to Article 2 of Decision 157/2007/QĐ-TTg (amended by Article 1 of Decision 05/2022/QĐ-TTg), the following students are eligible for student loans:

Students with difficult circumstances studying at universities (or equivalent to universities), colleges, vocational colleges, and at vocational training institutions established and operating in accordance with the laws of Vietnam, including:

1. Students who are both orphaned or only orphaned by one parent but the remaining parent is unable to work.

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

a) Households below the poverty line as stipulated by law.

b) Households near the poverty line as stipulated by law.

c) Households with an average standard of living as stipulated by law.

3. Students whose families are facing financial difficulties due to accidents, illness, natural disasters, fires, or epidemics during the period of study, with confirmation from the People's Committee of the commune, ward, or township where they reside.

Therefore, according to the regulations above, even if you are not from a poor or near-poor household, if your family is facing financial difficulties and has confirmation from the People's Committee of the commune, ward, or township where you reside, you can still apply for a student loan for study purposes.

Can students who do not belong to poor or near-poor households in Vietnam get a loan for study purposes? - Source: Internet

What are regulations on the loan term for student loans for study purposes in Vietnam?

According to Article 6 of Decision 157/2007/QĐ-TTg stipulating the loan term for student loans for study purposes in Vietnam as follows:

1. The loan term is the period of time from the date the borrower begins to receive the loan to the date the loan is fully repaid (principal and interest) as stated in the loan agreement. The loan term includes the loan disbursement period and the repayment period.

2. The loan disbursement period is the period of time from the date the borrower receives the first loan to the date the student graduates, including the time when the student is allowed to take a leave of absence from school for a specified period of time and the academic results are reserved (if any). The loan disbursement period is divided into loan disbursement periods as determined by the Vietnam Bank for Social Policy or agreed upon with the borrower.

3. The repayment period is the period of time from the date the borrower pays the first installment to the date the loan is fully repaid (principal and interest). For training programs with a training time of not more than one year, the maximum repayment period is twice the loan disbursement period, and for other training programs, the maximum repayment period is equal to the loan disbursement period. The repayment period is divided into repayment installments as determined by the Vietnam Bank for Social Policy.

Therefore, the loan term for student loans for study purposes will be implemented in accordance with the regulations above.

Can students who borrow student loans extend their loan term for study purposes in Vietnam?

According to Article 11 of Decision 157/2007/QĐ-TTg stipulating the adjustment of repayment terms, extension of repayment terms, and transfer of overdue loans as follows:

1. At the end of the repayment term, if the borrower is having difficulty repaying the loan, they must submit a written request for a loan extension to be considered by the Vietnam Bank for Social Policy. The extension period is limited to 1/2 of the repayment term.

2. If the borrower does not repay the loan on time by the end of the repayment term and is not allowed to extend the loan, the Vietnam Bank for Social Policy will transfer the loan to overdue status. The Vietnam Bank for Social Policy will cooperate with local authorities and political-social organizations to take measures to recover the loan.

3. The Vietnam Bank for Social Policy will specify the procedures for adjusting repayment terms, extending repayment terms, and transferring overdue loans.

Therefore, according to the regulations above, students who borrow student loans and have difficulty repaying the loan may be considered for a loan extension by the Vietnam Bank for Social Policy if they submit a written request for a loan extension.

Best regards!