Role Of State In Educational Program Credit

Participation of state in financing of education is in allocation of financial aid to the banks for students trained according to first-priority professional programs in type of:

• Part of costs subsidizing on not paid educational credits up to twenty percent from total quantity of the contracts for vocational training signed with clients;

• Issue subsidies to banks for partial settlement of costs on interest payment for the educational credits which works from the moment of the agreement conclusion and during all term of loan use.

It means that all who study at educational institutions according to the approved professional education programs can obtain a credit privilege for training payment. Maximum of such interest rate won’t exceed the fourth part of refunding rate plus three percent. Financial institutions, which grant soft credits on training, have no right to take additional requisitions including the commission for servicing of the account of credit recipient.

Payment is not levied for the credit within the whole period of training and three months more after study completion. The soft educational credit should be repaid throughout ten years after education completion. Advanced repayment of the credit is not forbidden, penalties in this case are not applied to the client. To obtain the soft educational credit isn’t required to submit pledge and guarantee to the bank. In this case the state acts as a guarantor.

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