Students Worried About Economic Fluctuations
According to a survey from OTP Bank, more than half of students in higher education in Hungary would consider a student loan due to an increase in living costs.
“At OTP Bank, we are aware that continuing education is a big challenge for young people. We would like to reduce the financial burden of students by creating a discount scheme for the OTP Student Loan Account, thereby supporting them in achieving their goals,” says Noémi Kertes, associate in product development at OTP Bank.
Based on the data of OTP Ingatlanpont, you cannot even find a socialist-era prefab concrete panel apartment in Budapest for less than HUF 150,000 per month, but even in rural towns, the monthly rent of an apartment for rent starts at HUF 120,000-140,000.
According to a recent OTP Bank survey, almost every second young person is worried about economic changes, and cheaper offers are no longer expected until the opening of the school year, so students cannot count on prices going down until fall. Moreover, due to seasonally improving demand, a further increase should be expected.
OTP Bank shares that with their free-to-use student loan (Student Loan 1), applicants can spend their money on anything from housing to the purchase of books, notes, and technical equipment, to everyday expenses and even recreation.
Those who apply for a Student Loan 1 can borrow an amount ranging from HUF 15,000 to HUF 150,000 per month, which can be up to HUF 750,000 per academic semester. You can apply for Student Loan 1 at any time during your studies with an active student status. In order to reduce bank costs, a discounted account management service is available under the name OTP Student Loan Account.
Almost a fifth of the respondents would take out a student loan regardless of inflation, 15% of them claim that the rise in prices has no effect on whether they would take out a student loan, and 13% of the respondents answered that they decided to take out a loan specifically because of inflation.
According to OTP Bank, the majority of students do not have a specific goal with Student Loan 1, rather general spending such as food and drink, clothing, and covering housing costs. The purposes of use are also savings, travel, and investment, as well as the possibility of spending the borrowed money on entertainment.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.