Student loan limit may rise from HUF 70,000 per month
Photo by Liptak Robert / Shutterstock.com
Increased spending by higher education students justifies raising the maximum amount of the free so-called Student Loan1, writes economic daily Világazdaság.
Photo by Liptak Robert/Shutterstock.com
Péter Magyar, CEO of the Student Loan Center (Diákhitel Központ Zrt. or DHK for short), told the paper that it is working on new products and preparing more changes to existing loans.
Thus, if the government agrees to the plans, the maximum allowable Student Loan1 from the next school year would be higher than the current monthly HUF 70,000. The increase is also justified by the fact that nearly 80% of new borrowers already require a maximum loan limit.
On the financing side, the increase is also timely, as student loans have an earlier repayment period of eight to 10 years, and former students in the repayment phase repay on average 1.5 times the minimum monthly repayment prescribed.
Thus, the risk premium in the cost structure of student loans is minimized. The center also plans to include an adult education student loan scheme. This would be a kind of income replacement loan that would be launched in both fixed-rate and fixed-term versions, vg.hu explains.
Moody's Affirms Budapest's 'Baa3' Rating
Bulgaria's Household Income, Spending Rise 20% in 2023
Hungary, UAE Sign Defense Industry Agreement
Hungary Launches HUF 15 bln Tourism Sector Support Program
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.
