Student loans give strength to the school journey

Credit policy for students is one preferential loan policy of our Party and State. In recent years, thanks to the network of Social Policy Bank in the province and localities, this fund has helped thousands of young people to continue going to school, realize their aspirations and dreams.

 Officials of SPB Binh Duong branch disbursed to households with difficulties in Tuong Binh Hiep ward, TDM City

Many loan options

In recent years, despite certain difficulties, Social Policy Bank - Binh Duong branch has implemented well preferential loans for students with difficult circumstances. Vo Van Duc, Director of Social Policy Bank - Binh Duong branch, said since Prime Minister’s Decision 157 on student loans took effect (Oct 1^st 2007), thousands of pupils, students have been beneficiaries of this fund. Solely in 2015, the unit disbursed nearly VND200 billion for more than 3,500 students in the province. Preparing for the new school year of 2016-2017, from the beginning of the year, the bank finished necessary steps for a simple, convenient, timely disbursement of student loan program.

To achieve the above results, according to Mr. Duc, the unit advised PPC to organize conferences disseminating the student credit program among all levels, sectors, and organizations; cooperated with localities to contact educational institutions to specify the student number to identify loan needs, set up credit plan and allocate funds.

Mr. Duc said, the bank branch also formed delegations to examine actual situations, learn about difficulties of grassroots level to timely resolve. In particular, through Trust funds, Savings and Loans organizations, the bank has popularized the program, publicized policies and terms at locality’s offices.. so that all people may learn about this program.

Giving strengths to the future

Before 2007, when there were any student loan programs, many poor students admitted to colleges, universities, or vocational schools encountered many difficulties. Decision 157 of the Prime Minister on student credit programs has opened up many opportunities for disadvantaged students. Binh Duong province has also saved funds for this program in order that students do not have to drop out of study. Thus, many students have benefited from this program.

Family of Nguyen Thi Bach Tuyet in Tuong Binh Hiep ward, TDM City is one poor household that was granted a student loan. Her house is an area of only 50m2, her job is tailoring with unstable income while she must bring up 2 children. In 2012, her elder daughter was admitted to a university, but Ms. Tuyet did not have enough money for her study. Through the introduction of local Savings and Loans organization, she was granted a loan from Social Policy Bank to realize her daughter’s learning dream. Ms. Tuyet said: “Thanks to Social Policy Bank’s loans, my daughter was able to finish her learning. I am very grateful to the Party and the State for helping my family to realize our wish”.

It can be said that student credit program has contributed to creating a trained workforce to serve society in the future.

Preferential loans for medical students

The Prime Minister issued Decision 09/2016/QD-TTg on loans for medical students after graduation during internship at medical facilities to get the work permit. Accordingly, disadvantaged students after graduation and during internship period at medical facilities to get the work permit are entitled to preferential student loans. Loan limit is equal to the maximum level of students, is VND1,250,000 / month / student according to current regulations. Lending rate is 0.65% / month; delinquency rate is equal to 130% lending rate.

To get a loan, medical students must be certified by a medical facility in terms of internship period, internship costs and have no work contract or labor contract with medical facilities during internship. Subjects are orphaned students, fatherless and motherless, either fatherless or motherless and the other has no work capability; graduates m poor households or households with a maximum per capita income of 150% of the per capita income of a poor household; graduates and family having financial difficulties accidents, illnesses, natural disasters, fires, epidemics during internship period certified by the commune-level People's Committee.

This decision will take effect from May 1.

Reported by Thanh Hong – Translated by Ngoc Huynh