Following the entry into force of the Law on Science and Studies of the Republic of Lithuania, by Resolution No. 480 the Government approved the new Description of the Granting, Administration and Repayment of State Loans and State-Sponsored Student Loans (hereinafter referred to as the Description). According to the newly approved loan description, state loans and state-supported loans are provided for students. Government loans are made out of state funds, while state-supported loans come from the funds of credit institutions (i. e. private banks).
Undergraduate, integrated and postgraduate students of public higher education institutions who have enrolled in higher education institutions until 2009 and who pay a flat-rate contribution of 4 basic social benefits (BSI) under the Law on Science and Studies of the Republic of Lithuania are eligible for state loans, i. e. 152 EUR.
Application forms for these loans are supposed to be submitted in the fall and spring semesters. Contracts are signed at the State Studies Foundation (hereinafter – the Foundation). The tuition fee loans are directly transferred to the account of the higher education institution.
Repayment of a government loan must begin no more than 2 years after the completion of the studies for which the loan was received, termination or removal of the borrower from the student lists. Borrowers must start paying interest no later than 2 years after graduation or termination of studies. The interest rate is 5 percent.
Undergraduate, postgraduate, graduate, postgraduate and graduate students, as well as non-degree students, are eligible for state-supported loans.
Students are eligible for different state-supported loans:
The borrower's total loans, excluding interest, received under the Description may not exceed 385 BSI.
A government-sponsored loan agreement shall specify the type, amount, type and amount of interest (in the case of variable interest, the interest base and margins), the terms of the loan repayment and payment of interest and any other terms and conditions of granting and repayment. Interest on a state-supported loan begins to run on the date of disbursement of the state-supported loan and is calculated on the amount of the state-funded loan disbursed and not refunded amount. Interest calculated during the studies may be paid from the funds available to the Fund.
Repayment of a government-sponsored loan shall commence no later than 12 months after the completion or termination of the studies and shall be reimbursed no later than 15 years after the beginning of the loan repayment.
In cases where the need for state-supported loans does not exceed the amount of state-sponsored loans, all students who have duly completed an application form for a state-supported loan are enrolled in the list of students proposed to conclude state-supported loan agreements. In cases where the need for state-sponsored loans exceeds the amount of funds provided, the list of students proposed to conclude state-sponsored loans with a credited institution shall be drawn up according to the purpose of the requested for the state-supported loan, student's social status, degree, average of the grades of the subjects during the semester (in the case of first semester of studies – the amount of the admission score).
All types of government-sponsored loans are granted annually during the fall semester. Loans for study tuition, for partial studies under international (interagency) agreements, and for living expenses are provided additionally during the spring semester. To apply for a loan, a student must register on the Foundation's website by filling in an application form.