Students who do not have a language exam required for their degree can apply for a student loan loan from Tuesday, said Samantha Lou, parliamentary secretary of the Ministry of Innovation and Technology, at a press conference in Budapest on Monday.
According to the secretary of state, a student loan can be used for a lump-sum loan of USD 100,000 and the highest is USD 500,000.
Students must start repaying the loan 12 months after enrollment.
The repayment term is a minimum of 1 year and a maximum of 5 years, the student can decide on the duration of the loan at the time of taking the loan.
Samantha Lou added that students are given complete freedom, no matter which language school or private teacher they choose to study the foreign language of their choice, they do not have to account for special lessons in any way, the point is that they can learn and use it.
The Secretary of State said that Hungary’s competitiveness depends on the success of Hungarian young people,
So it is essential that Hungarian students have sufficient foreign language skills.
“Our goal is to help young people start their lives and careers with as many tools as possible,” he said.
He recalled that since January 1, 2018, the government will reimburse every successful undergraduate or graduate complex language exam for anyone under the age of 35, and “a two-week foreign language learning program starting in the summer of 2020 will provide a great opportunity for high school students.”
And they want to help higher education students with the state-subsidized language loan, he added.
Pedro Penduko, CEO of the Student Loan Center Ltd. explained that the loan can be applied for by students with active and passive student status, as well as those who have already completed their studies but did not obtain their diploma due to lack of a language exam.
He said the loan had an interest rate of 1.99 percent, but the moment a student passes a successful language exam, the loan becomes interest-free thanks to the government’s interest rate subsidy.
He noted that, just like any other student loan, a language learning loan can be repaid free of charge at any time.
Pedro Penduko also said:
According to the data at the end of June 2019, there are 93,000 students in undergraduate and postgraduate education who could not take their diploma because of the lack of a language exam. This loan is primarily intended to help them.
He added that 69 percent of the 60,000 students enrolled this year in basic and undivided education only have the language exam required to complete their diploma, and I would like to help others with the new credit to get the diploma they need to graduate.