State-supported student loans
Ūkio bankas extends State-supported loans to students which allow them to pay for their studies and have means for living. A State-supported loan means that the State guarantees loan repayment and interest payment to the bank, while the student is not required to provide any loan security, such as pledge of property, surety, etc.
State-supported student loans are granted twice a year – for the autumn and spring terms.
This way of lending is the most suitable for persons starting their independent life as the loan is granted under favourable conditions. A young specialist is entitled to quite a long repayment term of the State-supported loan and low interest on the loan. Furthermore, no fees are charged for agreement processing and early repayment of the loan and no commitment fee is applied. Interest on the loans meant for paying the cost of studies and for partial studies under international (cross-institutional) agreements is paid by the State over the entire period of studies.
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How to receive a State-supported loan?
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An applicant should fill in an application-questionnaire and submit it to the State Studies Foundation. The period for submitting applications-questionnaires is set by the State Studies Foundation.
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The period for filling in and submitting to the Fund applications-questionnaires of the students wishing to take out State-supported loans for the study year 2011/2012 is from 18 August until 26 September 2011. The applications-questionnaires will be filled in online on the Foundation’s website (www.vsf.lt).
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Upon expiry of the period for registering applications-questionnaires of the students wishing to take out State-supported loans set by the Foundation, the Foundation compiles a list of students eligible for concluding agreements and posts it on the Foundation’s website (www.vsf.lt).
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After the list is published, the student has to check whether the State grants a guarantee for his loan. If the student’s name is on the list, he is invited to contact the bank.
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Documents required by the bank:
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a loan application in the established form (03.03.08 C-8.0. Texts of lending agreements with standard general parts and standard documents. Natural person’s application for a loan);
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a consent for the processing of personal data (03.03.08 C-8.0. Texts of lending agreements with standard general parts and standard documents. Consent for the processing of personal data);
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a passport or personal identity card;
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if the student is represented by a person authorised by him – a notary-certified Power of Attorney to represent the student and to sign a loan agreement as well as the authorised person’s passport or identity card.
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The amount and terms of the loan
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The State-support student loans are of three types:
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To pay the education cost – not more than a cost of one year studies (loans are not granted in the spring term);
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To pay the cost of living – up to LTL 6 500 (if the loan is granted in the spring term – up to LTL 3 250);
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For part-time studies according to international (interdepartmental) agreements up to LTL 7 800.
The state may pay interest for the loans designated for the cost of studies and part-time studies according to the international (interdepartmental) agreements during the period of studies. Interest for the two types of loans will be paid by a student after graduation, suspension or termination of studies.
More detailed information about the procedure for paying interest with the funds of the State is available in Resolution No 831 of the Government of the Republic of Lithuania of 7 July 2011 ON THE AMENDMENT OF RESOLUTION NO 480 OF THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA OF 27 MAY 2009 ON THE PROCEDURE FOR GRANTING, ADMINISTERING AND REPAYING STATE LOANS AND STATE-SUPPORTED LOANS TO STUDENTS
Interest on the loans intended to cover the cost of living shall be paid by the student to the bank on a monthly basis within the entire term of the loan.
Interest rate: 3 month VILIBOR plus 2.5% (bank’s margin).
Loan repayment term: in 15 years from the beginning of loan repayment in equal monthly instalments.
Beginning of loan repayment: 12 months following completion of the studies, termination of the studies or striking the borrower off the list of students.
