In order to mitigate the unfavourable impacts of the world economic crisis, those paying off their Student Loan from their salary and thus are at least in the third year after their repayment obligation began and who do not make a repayment based on the minimum wage have the option to request a reduction in their repayments from the Student Loan Centre. Only those whose contract is terminated, by law, by the Student Loan Centre are not eligible for this option .
The Student Loan Centre may authorise a lower installment for a maximum period of 24 months without examining the reasons for such a request. The amount of the reduced repayment installment may vary from person to person depending on the loan amount, and may not be lower than the minimum repayment installment amount specified for the current year on the basis of the minimum wage of October 31 of the previous year (defined on the basis of 6, 8 or 9% repayment ratio).
To request a lower repayment installment amount, log in to Student Loan Direct. The application needs to be printed, signed and mailed to the Student Loan Centre (Diákhitel Központ 1996 Budapest).
Important: as a result of lowering the repayment installment amount, your loan period may increase, which extends the repayment period.
The purpose of the targeted interest subsidy is that for this benefit period the state assumes the payment obligation of the transaction interest from the borrower and, as a result, the borrower’s debts is not increased by transaction interest during the benefit period.
The targeted interest is available even for the duration of college studies.
It is important for those borrowers whose repayment obligation has started that the person who receives targeted interest subsidy has their repayment obligation automatically suspended, i.e. they are not obliged to pay the monthly regular repayments for the benefit period.
Both targeted interest subsidy and the suspension of the repayment obligation are benefits to be provided exclusively upon request. It is also important that the earliest the benefit is available is on the first day after the application is submitted.
Who is entitled to avail of the targeted interest subsidy?
Those eligible for pregnancy confinement benefit (TGYES), GYED or GYES, may submit an application to the Student Loan Centre requesting the suspension of the targeted interest subsidy and the repayment obligation. If the decision-making Hungarian State Treasury grants the request, the borrower is entitled to the targeted interest subsidy and, at the same time, their repayment obligation is also suspended. The Hungarian State Treasury or the Student Loan Centre informs the applicant about the decision.
Unfortunately, borrowers entitled to GYES who are conducting full-time income-generating activities may not be eligible.
What documents do I need to submit?
To request targeted interest subsidy, log in to Student Loan Direct, complete the application form under the menu item Submission of Forms, print then sign it and mail it to the Student Loan Centre (Diákhitel Központ Zrt. 1996 Budapest) with the required certificates*.
*The relevant sections of the form submitted under the legal title of the pregnancy confinement benefit, GYED and GYES also need to be completed by the organisation verifying disbursement of such payments.
Organisations verifying disbursement of the respective social benefit:
Pregnancy confinement benefit and GYED – disbursement of these benefits may be certified by the following bodies:
- the Health Insurance Fund with regional competence,
- the social security payment location operating on the employer’s site, or
- The District Directorate of the Hungarian Treasury acting as the social security payment location.
GYES: the District Directorate of the Hungarian Treasury is entitled to verify disbursement of the social security payment.
Are you no longer eligible or the legal title of your eligibility has changed?
If the eligibility period changes with regards to the targeted interest subsidy and the suspension of the obligation to repay the loan, that is
- if the period of pregnancy confinement benefit, GYED or GYES finished prior to the predefined date,
- if you began an income-generating activity during your eligibility for maternity benefit,
please report these changes to us through Student Loan Direct.
What subsidies are available?
We take into account special living situations and therefore offer the option to suspend the repayment obligation. In living situations related to maternity leave (TGYÁS, GYED, GYES), targeted interest subsidy is available and at this time the repayment obligation is also automatically terminated.
Targeted interest subsidy | Suspension of repayment obligation
The benefit of suspending the repayment obligation is that you do not need to pay mandatory repayment installments for the duration of a certain period.
This benefit may only be provided upon request and under the following terms and conditions:
Who is entitled to suspend their repayment obligation?
- those eligible for pregnancy confinement benefit (TGYES), GYED or GYES,
- those eligible for a disability pension, disability allowance, or an accident-related disability pension,
The repayment obligation may be suspended with retrospective effect effective on the first day of the above legal titles, provided that the effective data may not be earlier than the first day of the year when the application is submitted. Should the first day of the specified legal title fall on a date preceding this point in time, repayment may be suspended from the first day of the year when the application is submitted.
Repayment obligation is automatically suspended for borrowers who, under the legal title of TGYES, GYED or GYES (maternity benefit) scheme, are entitled to a targeted interest subsidy based on the decision of the Hungarian State Treasury.
This benefit does not apply to a borrower who is entitled to GYES but has a full-time income-generating activity.
What documents do I need to submit?
To suspend repayment, log in to Student Loan Direct, complete, print then sign the application and mail it to the Student Loan Centre (Diákhitel Központ Zrt. 1996 Budapest) with the required certificates.
*The relevant sections of the form submitted under the legal title of TGYES, GYED and GYES also need to be completed by the organisation verifying disbursement of such payments.
Organisations verifying disbursement of the respective social benefit:
TGYES and GYED:
- the Health Insurance Fund with regional competence,
- the social security payment location operating at the employer’s site, or
- The District Directorate of the Hungarian Treasury acting as the social security payment location.
GYES: the District Directorate of the Hungarian Treasury is entitled to verify disbursement of the social security payment.
Clients receiving disability pension, disability allowance, accident-related disability pension shall enclose to their application the following documents:
- the final decision establishing the specific pension or allowance and
- the last cheque or bank statement related to such payment.
Are you no longer eligible or the legal title of your eligibility has changed?
If you are no longer eligible for the subsidy or the legal title used as the basis for the subsidy has changed, you need to report it to us through Student Loan Direct.
Are you already repaying a student loan, but you would like to take up a new course?
If you are under 40, establish your student status again and you have reported this fact to the Student loan Centre, your repayment obligation is suspended. This report may be completed in one of the following methods:
- If you are already repaying your loan but you enrol again for a course at a higher education institution, you can report this through Student Loan Direct. Complete, print then sign the application form and mail it to the Student Loan Centre (Diákhitel Központ Zrt. 1996 Budapest).
- If your Student Affairs Office confirms your student status, you will not have to start repaying the loan until you have finished your studies or become 40 years old. If you have some time left from your eligibility period, and you have no overdue debt to the Student Loan Centre, the amount previously established and stored in our system will be transferred to you at the time of the next disbursement.
- If you have some time left from your eligibility period, but you do not want to continue using your Student Loan, please report it to use (mailing address: Diákhitel Központ Zrt., 1996 Budapest).
