Asia: Government raises loan limits for students

The Prime Minister of Vietnam, Nguyen Xuan Phuc, has approved a plan which raises the maximum loan amount per month a student can take from VND250,000 to VND1.5 million (US$65.8) per month, to aid students pay for their tuition and subsistence allowance. This increase was approved since commodity prices and tuition and service have increased significantly in the market.

The government began providing loans for students in 2007 to help them with financial difficulties, with the new loan program taking effect on June 15. According to the Bank for Social Policy’s representative, loans for students have contributed to the education development for young people in the country and helped ensure equality in education. It has also helped develop skilled human resources and reduced poverty in Vietnam, with more than 3.4 million students benefitting from the program.

According to RFi Group data for Vietnam Priority and Retail Banking Council (16H2), 26% listed financing their children’s or grandchildren’s education as their top financial goal.

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