Last year, each student was eligible to get loan of VND1,5 million. Rising costs have led to sizeable increases in the demand for student loans. The loan increase accords the Prime Minister’s decision No. 1656 on adjustment of student loan.
The ministries of Planning and Investment and Finance will balance the loan and provide funds to compensate the difference and management fee for the Social Policy Bank to implement the program as per the law after 2020.
The decision takes effect from December 1, 2019 for all new disbursement.
The student credit program started from 2007 to help students pay for living expense. Because of rising costs of college, student loans hiked from VND800,000 in 2007 to VND2,5 million a student a month.
Students will pay back their loans when they are employed.