Azerbaijan may allocate loan for accommodation fees of students

Baku. 8 February. REPORT.AZ/ "Student loans will not cover only payment of tuition fees. We plan to expand this mechanism".

Report informs, said Rufat Mahmud, Executive Director of the “Maarifçi” (Enlightener) Student Loan Foundation.

He said that in the future loan may be allocated for accommodation fees of students: "Sometimes while speaking to students from districts, we see that in addition to tuition fees they have problems regarding accommodation. Allocation of loans for accommodation fees will be considered taking into account mentioned issue. In the next stages, assistance may be provided in any research works".

R.Mahmud noted that today repayment of loans is calculated on a fixed schedule: "However, many countries apply mechanisms based on income. Perhaps it is a bit early for us to implement it. We should develop it together with several government agencies. But we do not rule out this mechanism".

He also said that currently, loans allocated for the students under favorable terms, which lost head of family, parents or deprived of parental care, as well as for students with disabilities: "Loan interest rate changes around 6-8%. The loan repayment period is 5 to 10 years. Students are given certain grace period for repayment after expiry of the education duration. It considers employment of students. Payment must be made after the grace period. Students are given maximum of 7 000 AZN loan. It is a social project, and doesn't require any bail or deposit".

Executive Director said that currently, loans are allocated only for bachelor degree: "Loan will be allocated for degrees other than bachelor in the future. Of course, priorities can be set regarding specialties according to the strategic plan".