Getting an education is an important step in everyone’s life. While primary and secondary education is available free of charge at most educational institutions, quite often large sums of money are required to obtain higher education. Of course, many study programs offer their students the opportunity to earn budget places, as well as scholarships to even reduce their education costs slightly. But livelihoods are also needed to make a living, such as the monthly cost of a dormitory or apartment, and the purchase of food. Such additional expenditure is covered by a student loan intended for the social needs of the students.
Student loans can be obtained from banks
One of the most important aspects is income. If the student does not yet have his / her own regular income, then it is necessary to attract a guarantor, such as a parent with a stable monthly income. Student loan has a relatively low annual interest rate. Unlike other loans, student loans ensure that the borrower receives a constant portion of the loan amount each month. Of course, money is not counted in July and August when classes are not taking place. Repayment begins one year after graduation, when the student has found work. In the case of early school-leaving, or failing to obtain a degree, reimbursement must start a few months after leaving the school. However, you also have to make payments during your studies – you must start paying interest one month after your first deposit.
Student loan is one of the types of cash loans that can be redeemed
This means that the State will repay the loan, unless such a request is approved. In order for a student loan to be extinguished, it is necessary to pass the competition and the applicant must meet certain criteria. There are also some factors that can facilitate student loan repayment.
To apply for student loan repayment:
- first, the loan must be granted by a State guarantee or by the State budget;
- secondly, at least one year must have elapsed since graduation, meaning that student credit can not be canceled for those who have left education before they have obtained their diploma;
- thirdly, the former student must have worked in the area in which he / she was previously studying and must have been employed for at least one year;
- fourth, the workload must not be less than half-time.
Applicants are identified through a competition. But it is not enough for a person to fulfill all conditions. Each year, an order is issued from the Cabinet of Ministers, which determines which profession can be granted a student loan repayment. Occupations can change depending on the needs of the economy, so you always have to find out who is being given the opportunity.
Another important factor in the competition is how long the person has worked in the profession. As already mentioned, student loan cancellation is not granted to those working in a sector other than education. This option is generally available to persons working in state or municipal institutions, medical institutions providing services provided by the state budget, as well as non-governmental institutions performing state or municipal social services provision, as well as those working in private pre-school education. institutions.
To apply for a student loan cancellation, the applicant must apply for a state loan repayment. Also, there must be a certificate from the workplace. Importantly, this statement comes from your primary job. A copy of the completed higher education diploma is also required. After that, you have to wait for the results of the competition, which also determines which student loans will be canceled and which will not. However, if the student loan application is not approved, you can always apply again because the competition is held every year.
The loan repayment process depends on the terms and conditions of the loan agreement
If the repayment is fixed for 5 years, 20% of the total principal amount of the loan is canceled for each year of service in the relevant profession. However, if the loan maturity is 10 years, 10% of the loan principal is canceled for each year of employment in the profession after graduation. If the repayment of the student loan is approved later, that is to say, if the person has been working in the profession for several years, but has paid for the loan himself, the amount of the loan paid in advance from his personal finances is, of course, not refunded. Because the loan repayment period is several years, life changes, such as a change of job, can always occur. As it is the job that is relevant to the education at stake plays an important role in extinguishing such loans, changes in the workplace must always be communicated. If the field of work is unchanged, the same should be reported, but if the person no longer works in the relevant sector, the loan can be canceled.
Pay the student loan has a child born or has undergone the adoption process
relief is applied. For each child 30% of the student loan is canceled. However, if the student loans are for both persons who now have a child in the family, only one of them may have that portion of the loan canceled. Likewise, such benefits are granted if the person has become a Group 1 or Group 2 disabled person. In this case, the credit is extinguished in full or 100% of the total credit. The student loan does not have to be repaid even if the person is dead.