Hungary: EIB continues to support student loans

The European Investment Bank (EIB) is lending EUR 100 million to the Student Loan Centre (Diákhitel Központ) in Hungary to be on-lent to students pursuing undergraduate and graduate degrees at Hungarian higher education institutions.

Mr Wilhelm Molterer, EIB Vice-President responsible for lending in Hungary, commented: “This loan represents a continuation of our successful cooperation with Diákhitel. EIB funds totalling almost EUR 500 million, provided on favourable terms, are making higher education accessible to a wider group of students. This is helping to increase the proportion of Hungary’s population with completed higher education studies, with positive implications for the country’s society and economy”.

Diákhitel Központ’s Student Loan Scheme, which has been in operation for almost twelve years, provides financial aid to eligible undergraduate and graduate higher education students regardless of their social or educational background. This is of particular significance in Hungary, whose higher education structure has undergone massive changes in recent years.

Csaba Bugár, the CEO of Diákhitel Központ emphasized that this fourth large amount credit line provided by the European Investment Bank is only used for financing the Student Loan 2 product: “We are very happy that our successful cooperation with the EIB continues, and that the new Student Loan scheme introduced last year also won their support. With this loan, our company can ensure more equal access to higher education”.

The EIB provided loans to Diákhitel of EUR 100 million, EUR 150 million and EUR 145 million in 2005, 2007 and 2010 respectively. The first two loans are fully disbursed and allocated to students, and the third is being disbursed in line with the schedule, with full utilisation expected by 2014.