site.btaBSP–United Left Proposes Cut in Student Loan Interest Rates

A bill to reduce interest rates on student loans for students and doctoral candidates is being submitted by BSP–United Left, party MP Gabriel Valkov said in Parliament here on Wednesday.

The new proposed rate is 3%, while currently it sits at 7%, which is the State ceiling. Banks should not profit from students who lack the means to fund their education, Valkov said.

A second amendment targets the demographic crisis. If a member of a young family that uses a student loan manages to graduate and has two children, the State repays the loan, Valkov explained.

The law allows a framework agreement between banks and the Ministry of Education and Science but it is often ignored and carries no penalties. The bill introduces sanctions. MES currently pays bonuses to banks for issuing loans, but the proposal will cut these payments if banks fail to meet obligations under the agreement, Valkov added.

These are not social handouts but a fair start in life, because everyone deserves the right to learn and grow in Bulgaria, he said.