This proposal was outlined by the Ministry of Finance in its draft "Decision on credit for students", which is currently open for public feedback.
Currently, students can borrow a maximum of 4 million dong per month to cover study and living expenses. This amount was last adjusted in 2022, but the drafting agency believes it is no longer suitable for the current socio-economic reality, given increases in inflation, tuition, and living costs.
Specifically, from 2022 until now, the consumer price index (CPI) has increased by an average of about 3,34% annually. According to the Ministry of Finance, a practical survey in Hanoi and Ho Chi Minh City shows that the basic living costs (accommodation, transportation, books, and study materials) for students living away from home range from 3-5 million dong per month.
Regarding tuition, from the 2026-2027 academic year, fees at public higher education institutions will range from 17-87,5 million dong per year. This is equivalent to 1,7 to 8,75 million dong per month, considering the actual study period lasts 10 months.
According to the Ministry of Finance, the total living and tuition fees for students could reach 13,75 million dong per month. The principle of the credit program for disadvantaged students is that the State supports approximately 60%, equivalent to 8,25 million dong.
Therefore, the drafting agency proposes doubling the maximum loan amount to 8 million dong per month. The specific loan amount for each student will be decided by the Vietnam Bank for Social Policies, depending on the tuition fees of each institution and local living costs.
The current loan interest rate for this program is 0,5% per month, equivalent to 6% per year. The drafting agency anticipates the new interest rate will match that for poor households, at 0,52% per month, or 6,24% per year. However, this rate may be adjusted periodically to ensure it remains relevant to the actual situation.
The credit program for disadvantaged students has been implemented since 2007, with the maximum loan amount adjusted seven times. According to a report from the Vietnam Bank for Social Policies, after 19 years of implementation, this policy has supported more than 4 million students in difficult circumstances.
Total loan disbursements reached over 92.530 billion dong by the end of May, averaging 4.870 billion dong annually. Currently, more than 355,000 households still have outstanding debt totaling approximately 25.000 billion dong. The Ministry of Finance assesses the program's credit quality as relatively effective, as current overdue debt is less than 65 billion dong, accounting for 0,27% of the total outstanding debt.
In addition to adjusting the loan ceiling and interest rates, the Ministry of Finance aims to add students whose both parents have lost civil capacity to the policy's beneficiary group. This is "to ensure humanity and support for vulnerable individuals".
Under current regulations, three groups are eligible for preferential loans: students who are orphans of both parents or one parent, with the remaining parent unable to work; those from poor or near-poor households; and families facing financial difficulties due to accidents, illnesses, natural disasters, or epidemics.
Phuong Dong
