The Student Loan is a unique loan product offered with very favourable conditions.
There is no credit appraisal
No income, guarantor or other collateral is needed. Those who apply for a Student Loan and meet the eligibility criteria will receive the loan amount of their choice.
The Student Loan is an any-purpose loan
You do not have to report on how you are using the loan. You are free to decide how you want to spend it.
In monthly installments or in a lump sum?
You can choose whether you want to receive your money in monthly installments or in a lump sum every semester. Currently students attending a state-funded or a fee-paying course can receive up to HUF 200,000* or HUF 250,000* in a semester, respectively.
Those who choose a higher loan amount are also required to undertake to pay higher repayment proportion later.
* In special cases even higher loan amounts are available, which come along with a higher repayment portion. Read more about the topic here!
You can start repaying the loan later
You do not have to start repaying the loan immediately. Instead, you are required to start repaying the loan after the end of your student status, but no later than the year you become 40 years old.
Income-contingent repayment
The monthly amount, and therefore the overall period, of repayment is in accordance with the borrower’s financial situation. With a view to the hardship of young graduates, special conditions apply in the first two years of repayment, when graduates are required to make repayments on the basis of the minimum wage. From the third year the amount of monthly repayments is calculated based on the income the borrower earned two years earlier. If at any time later the borrower’s registered income remains below the minimum wage, their monthly payments will be based on the minimum wage.
Unlimited prepayment
You can make advance repayments any time and in any amount during the repayment period without having to pay any charge. The amount of the advance payment directly reduces the principal balance of the loan, thus effectively reducing the length of the repayment period.
Flexible repayment period
The length of the repayment period of the Student Loan is not fixed. It depends on the amount of your regular monthly payments and the amount of the advance repayments you make. The repayment period ends when you have paid off your debt.
Benefits offered to Student Loan recipients
Those who receive TGYES, GYED or GYES may request the suspension of their repayment obligation and also a targeted interest subsidy, the latter meaning that for a set period the state takes over the interest payment obligation from the loan recipient. Those eligible for a disability pension, disability allowance, or an accident-related disability pension may also request the suspension of their payment obligation.
