If you didn’t manage to get a state-funded spot at a university, you can take out an educational loan with government support. This allows you to “study on credit” at any licensed university in the country. You can verify the license on the Rosobrnadzor website.
What is a Government-Supported Student Loan?
A student loan with government support is regulated by the Russian Government’s Resolution No. 1448 dated September 15, 2020, “On State Support for Educational Loans.”
For students, the interest rate is fixed at 3% per annum, with the remaining interest subsidized by the government. In contrast, a regular consumer loan to cover tuition fees would have a market interest rate of approximately 20% per annum.
Any adult citizen of Russia who has been admitted to a licensed university is eligible for the subsidy (conditions differ for minors), as stated by the experts at Roskachestvo.
How to Pay Interest on Such a Loan?
The total loan term consists of two periods:
- Grace Period: During the study period and for nine months after graduation.
- Repayment Period: The following 15 years.
Bank websites offer calculators to help estimate monthly payment amounts.
The repayment system for such a loan is structured as follows:
- In the first year, you pay 40% of the accrued interest.
- In the second year, you pay 60%.
- From the third year onward, you pay 100%.
Nine months after graduation, you will start repaying the principal amount.
What Documents are Needed to Apply for the Loan?
You will need the following documents:
- A contract for the provision of paid educational services, signed by a representative of the educational institution.
- Passport with a permanent registration mark.
- Certificate of temporary registration if you live outside your registration area.
- SNILS (individual insurance account number).
- A receipt or invoice for tuition payment with the tuition fee amount.
Applications can be submitted at any bank office, regardless of your registration location in Russia. Some banks also accept online applications.
For What Period of Study Can You Take the Loan?
The loan can be taken for any period of study. The student does not receive the loan
money directly. After the application is approved, the bank will credit the amount to the student’s account and then immediately transfer the funds to the educational institution’s account.
During the study period, the loan is disbursed in installments to cover each semester or year. If the loan was granted for one semester, the amount is transferred once. The loan amount is limited to the cost of tuition.
How to Repay the Loan?
Like other loans, payments must be made monthly according to the schedule. The payment date is the future graduation date specified in the contract with the educational institution. It is crucial to ensure the required amount is available on your card by the payment date. If you make a late payment, the bank will impose a penalty of 20% per annum on the overdue amount.
What Happens to the Loan if You Are Expelled?
If a student is expelled, the loan must still be repaid, but at the standard interest rate instead of the subsidized rate. Additionally, the grace period will be canceled, meaning the borrower will have to pay both interest and the principal amount.
Banks Offering Government-Supported Educational Loans
In Russia, four banks provide educational loans with government support: AEB, RNKB, Sberbank, and T-Bank (formerly Tinkoff).
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