The government’s latest loan release action has been announcedOn September 29, 2019 by admin
In the case of women with student loans, from 1 January 2018, the debts of the first child shall be suspended for three years, the second child shall, in addition to the suspension, be released half of the debt and the third child shall be completely discharged. The measure, which was already released in May, was published in the latest Hungarian Bulletin.
The government wants to help with family formation
Childbearing and parenting through its decision to suspend or terminate student loan debt, said Emmi’s State Secretary for Family, Youth and International Affairs in Budapest on Wednesday.
Katalin Novák held a press conference on Tuesday announcing a decision in the Hungarian Gazette to suspend debt repayment for three years from the date of birth of her first child to women with a student loan, and half of her debt to the second child they release, while in the case of the third child they completely release their debt.
Suspension and remission may be requested for children born after January 1, 2018, but may be applied for as early as the third month of pregnancy, and may apply to children born to blood and adopted. Existing children are also included in the allowance, so if one child is already present and the second child is conceived, half of the debt is released.
During the suspension, the interest burden is borne by the state, so the debt does not increase, and if you have both types of student loans, you can decide which one to apply for the discount, the Secretary of State added.
That the student loan system was introduced
In 2001 by the first Orbán government. Since then, nearly 380,000 have been used, worth HUF 315 billion.
He also said that over the years, the government had always striven to improve the terms of the loan, first introducing the Student Loan2, which can be used to pay the tuition fee after the free use of Student Loan1.
As of October this year
Student Loan2 will be made free of interest for further relief and further changes will come into effect next year.
As of 1 February, the amount available for free use of Student Loan1 will be raised from HUF 50,000 to HUF 70,000. The application age limit for both types of student loans is raised from the current 40 to 45 years.
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