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Student Loans Set to be Expanded to Cover Funding for Vocational Training

MTI-Hungary Today 2020.07.24.

The economic cabinet has proposed expanding student loans offered by the state-owned provider to cover funding for vocational training and adult education starting from the spring semester of the next academic year, Finance Minister Mihály Varga said on Thursday.

The measure would help finance the studies of 57,000 people participating in adult education programmes and 220,000 students enrolled in vocational training programmes, Varga said after a meeting of the cabinet.

Gov't Suspends Repayment of Baby Bonds, Student Loans
Gov't Suspends Repayment of Baby Bonds, Student Loans

The government is forgiving certain loan repayments this year, including those on baby bonds and student loans, due to the novel coronavirus epidemic, the head of the Prime Minister’s Office said on Thursday. Gergely Gulyás said at a regular government news briefing that demand for consumer loans was expected to be high in the current […]Continue reading

Students in the programmes could be eligible for a monthly general-purpose loan of up to 150,000 forints (EUR 429), Varga said, adding that they would have ten years to repay the loan after graduation.

Besides preventing an upsurge of the novel coronavirus epidemic, the government’s most important task is to reboot the economy and provide assistance to the sectors hit hardest by the epidemic so that new jobs could be created, the minister said.

Introducing student loans for vocational training programmes would help boost the country’s competitiveness and support employees in acquiring up-to-date and marketable knowledge, he added.

Featured photo by Tamás Kovács/MTI