From June 15 this year onward, Vietnamese students can take out 20% more in loans to support their studies.
The Vietnamese government recently raised the cap on student loans to VND1.5 million (US$65.80) a month, VND250,000 up from last year's adjustment, reports VnExpress. The policy change, which comes into effect mid-June, is designated to help students cope with future increases in tuition fees and living costs.
Specifically, students coming from impoverished backgrounds, such as those who have lost their parents or are unable to provide for themselves due to a physical condition, are eligible to apply for the loans. Repayment is calculated at an interest rate of 0.5% a month, and the first installment should be settled within 12 months after the student finishes his or her studies and procures a fulltime job.
Since 2007, the Bank of Social Policy has issued loans to at least 3.4 million young people, helping them pursue education and gain employable skills, reports VietnamNet.
In reality, however, many families often reflected that the previous monthly limit of VND1.25 million could barely cover all actual expenses, according to Zing. Nevertheless, Van Long, whose children are studying in Hanoi, told the news sources in Vietnamese that the loans "have relieved some financial burden for his family, especially with the low interest rate."
[Photo via Tuoi Tre]
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