Only two banks have decided to start offering student loans: DSK Bank and Raiffeisen Bank, and have
signed agreements to that effect with the Education Ministry, the e-zine mediapool.bg reported Monday.

It means that after two years of failed start, the system for student lending will finally get going in the upcoming academic year.

Student loans will be available at preferential terms and are backed by government security.

The government has decided to set aside 40 million leva to secure student loans this year and as much next year.

The loans will be available at a fixed interest of 7 per cent and will mature in 10 years. They will be released for tuition and sustenance. The only condition for the sustenance loans is that the student has a child or adopts one.