Ulaanbaatar
Rule of student tuition loan renewed to widen access
Politics
Ulaanbaatar /MONTSAME/ During today’s cabinet meeting, the Government renewed “Rule on Student’s development loan” to widen the access of the loan, soften some requirements and criteria and facilitate the loan issuance on the basis of the current state of loan issuance and proposals from people.
According to the renewed rule, low rate and short term loans will be granted to all students pursuing a bachelor degree in evening classes and correspondence courses as well as for master and doctorate degrees while long term loan will be available only for bachelor students. 38115 students are calculated to get the tuition loan newly. Moreover, 6000 students will be eligible to get loan with a change in the rule that a guarantor of students up to 18 years old could be a borrower.
The loan can now be issued regardless of residency location, allowing 87625 students from countryside to get a loan without travelling to countryside or their parents are not required to come to Ulaanbaatar for making the guarantee. Students used to submit 7 types of documents and notarized copies for a loan application. This procedure is now cancelled, as commercial banks are provided with the possibility to check those online.
Relevant ministers are assigned to introduce proposals this November on independent fund, which can run with its accumulated assets, not causing a burden on the state budget as well as granting student development loan without collateral, studying possibilities to create financial mechanisms to solve repayment risks. The Government resolution N111 on Rule of Student’s development loan was adopted in 2016 and the loan for student tuition has been issued starting December 25 last year. Currently, 1002 students received the loan of MNT 1.6 billion.
The rule renewal would not cause additional financing from the budget. A total of MNT82.7 billion was projected be spent for the student loan, enabling 41 thousand students to study without tuition payment burden.
According to the renewed rule, low rate and short term loans will be granted to all students pursuing a bachelor degree in evening classes and correspondence courses as well as for master and doctorate degrees while long term loan will be available only for bachelor students. 38115 students are calculated to get the tuition loan newly. Moreover, 6000 students will be eligible to get loan with a change in the rule that a guarantor of students up to 18 years old could be a borrower.
The loan can now be issued regardless of residency location, allowing 87625 students from countryside to get a loan without travelling to countryside or their parents are not required to come to Ulaanbaatar for making the guarantee. Students used to submit 7 types of documents and notarized copies for a loan application. This procedure is now cancelled, as commercial banks are provided with the possibility to check those online.
Relevant ministers are assigned to introduce proposals this November on independent fund, which can run with its accumulated assets, not causing a burden on the state budget as well as granting student development loan without collateral, studying possibilities to create financial mechanisms to solve repayment risks. The Government resolution N111 on Rule of Student’s development loan was adopted in 2016 and the loan for student tuition has been issued starting December 25 last year. Currently, 1002 students received the loan of MNT 1.6 billion.
The rule renewal would not cause additional financing from the budget. A total of MNT82.7 billion was projected be spent for the student loan, enabling 41 thousand students to study without tuition payment burden.
B.Ooluun
