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For 10 years already Lithuanian State Science and Studies Foundation develops state science and studies policy and implements students’ crediting and support programme issuing loans for the students of Lithuanian state and private higher education institutions. Since 1998 the State has allocated over 127.9 m. LTL for this programme; moreover, repaid loans, interest, and delinquency charges add up to the amount assigned by the State each year. This programme gave an opportunity to get preferential loans for the students of 46 higher education institutions. Currently there are over 55 thousands signed loan agreements.
The mechanism of providing and administrating state loans for students has been changed and elaborated during these years. In 2006 the Government passed new Rules for Granting Loans to the Students of Lithuanian State Higher Education Institutions, which allowed for more effective use of state’s budget funds and enabled students to get loans correspondent to their needs. The Foundation issues loans twice a year: in spring and in autumn.
Types of loans:
1. To cover tuition fees, if they had not been covered by the state budget funds - up to 520 LTL per term (up to 4 MLS*);
2. To cover living expenses - up to 4680 LTL annually (up to 36 MLS);
3. For studies abroad according to international agreements and arrangements - up to 4680 LTL (up to 36 MLS).
* MLS – the Minimum Living Standard for one month for one resident of the Republic of Lithuania, which is determined by the Parliament of the Republic of Lithuania (the Seimas). The current approved MLS amounts to 130 LTL.
Who can get a loan?
Loans are granted to undergraduate, integrated and postgraduate students of state and non-state higher education establishments, studying in corresponding study stage for the first time, irrespective of the study forms – full-time, part-time or extramural studies – they have selected.
Loans to cover tuition fees are granted to all students of Lithuanian state higher institutions without competition. Loans to cover living expenses and for studies abroad are issued on competitive basis to the students of all higher education institutions. A loan for studies abroad is issued only for the students who study in Lithuanian higher education institutions and who are going tu study to a foreign country on a temporary contract.
Preferential interest rate for students
The interest rate is 5 percent. Interest is counted and paid quarterly for the part of the loan which has not been repaid. The repayment of the loan begins no later than within 2 years from graduation or termination of studies. Interest is not accrued if the total balance owned is repaid before the date indicated in the repayment schedule, i.e. without waiting two years.
What are conditions for repaying a loan?
The repayment of all types of loans begins no later than within 2 years from graduation or termination of studies. Loans to cover living expenses and for studies abroad have to be repaid within 15 years
Loans to cover tuition fees have to be repaid within the period of time three times as long as the course, for which the loan was taken, took (e.g. if the student has taken a loan to cover one semester’s tuition fee, he/she has to repay it within 18 months after 2 years have passed from graduation/ termination of the studies). Loans are repaid quarterly in equal parts.
If the loan, a part of it or interest is not (re)paid according to the schedule, delinquency charges are counted for the amount, which was not paid on time.
The loan is repaid when all amount, interest, and delinquency charges are paid off.
When doesn’t the loan have to be repaid?
Repayment of the loan or part of it can be canceled by the decision of the Board if the person is unemployable and provides all documents, necessary to confirm the fact. The loan also does not have to be repaid if the receiver has died.
Is it possible to delay the repayment?
The loan repayment can be postponed for a limited period of time by the decision of the Board due to: disability, illness or injury, pregnancy and birth giving; for a non-working mother or father, caring for a child, individuals who are in military service, individuals who continue studies in the same or other study stage, individuals who get small income. The recipient of the loan has to send a written notification to the Foundation about the circumstances allowing changing terms of paying off the loan.
The precise provisions about the repayment of the loan and sanctions are stated in the loan agreement.
Priority for people in need of social aid
Granting loans to cover living expenses or for studies abroad on competitive basis, the priority is given to:
1. Those, who come from families receiving social aid (social allowance, compensation of expenses for accommodation heating and water) in a way the concept is defined in Article 3 of the Law of the Republic of Lithuania on Cash Social Assistance For Low-Income Families (Single Residents));
2. Those, who have care (wardship) appointed until their adulthood in the manner prescribed by the law or whose parents (the only parent) are deceased;
3. Those, who are acknowledged unemployable or partially unemployable in the manner prescribed by the legal acts or have severe or a medium disability.
If these priorities are insufficient, higher education institutions can also set other evaluation and selection criteria for receiving this loan (most common criterion being academic average).
Where and when one needs to apply in order to get the loan?
Students seeking to get loans to cover tuition fees or living expenses submit their applications and other documents at their universities. Universities set the rules and deadlines for submissions. The competition for loans for part-time studies according to international agreements and arrangements is conducted at the Foundation, where applications and documents are accepted. Lists of students, who are granted this type of loan are also made at the Foundation.
The money is transferred into students’ account only when the loan agreements are signed.
Tax concessions
Students who have taken loans to cover tuition fees are entitled to tax concessions – they do not pay income tax for the amount they have paid.
Student Loans in 1998-2007
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