What has the past year been like; how many people requested emergency support?
The Diákhitel Plusz (Student Loan Plus) was introduced in May of last year by the Hungarian government in response to the labor market and financial challenges caused by the pandemic. Many students ended up in tough financial situations as the first thing to go at the big companies was student jobs and internships. It soon became clear that this type of loan was an effective measure by the government when in the first weeks of its introduction thousands of people applied; last year, 30,000 people applied for this loan. Originally the deadline was December 31, but following the suggestion of the Diákhitel Központ, the government extended this to June 30, 2021. This was another smart decision as in this six months, more than 10,000 students applied for the loans. The Diákhitel Plusz loan has been the most successful student loan. Based on the positive feedback and the recommendation of student organizations and the Diákhitel Központ, the government decided to make this loan available again from October 1.
What makes the Diákhitel Plusz loan different from other student loans?
The best part is that it includes all the most favorable features of the other student loan models. The Diákhitel Plusz loan is an interest-free loan that can be spent on anything, worth up to half a million HUF. It is important to note that the Diákhitel Plusz loan is a so-called annuity loan which means that the student can decide what repayment period to choose: between one and five years, all after a one-year grace period. Even though only a month has passed since October, we have received over 5,000 applications. The Diákhitel Plusz loan will be available until September 30, 2022. Of course, the standard student loans will also be available. Based on the representative surveys, in the 20 years of our Diákhitel Központ’s existence, half of all students say that either they would not have been able to complete their studies without a loan, or it would have caused enormous difficulties; thus, these two loans are very useful as well on their own. For many, student loans are not just temporary support, but a resource for starting a business or for creating the proper working conditions.