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Saturday, December 3, 2016

Why in Russia it is not accepted to obtain a higher education in debt


The number of educational credits granted by Russian banks, hundreds of pieces. And banks that participate in the program of granting loans for tuition at a reduced rate, only two. “EV” to figure out why our students are deprived of the opportunity to borrow money for school.


photo: Kirill Iskoldsky

The statistical error

Recently, the Russian Ombudsman for students Artem Khromov has attended to the problem of limited access of students to educational loans. Limited is an understatement. According to Khromov, the students 80% of institutions do not have the ability to get a loan. The reason is that only 166 universities have concluded agreements with the Bank and the Ministry of education — namely, the agreement allows students of certain universities to participate in the loan program.

Due to the financial crisis of 2008-2009, the demand for such programmes is gradually falling, the banks folded target program, shifting the emphasis in favor of non-purpose consumer lending. Earned a state program involving interest rate subsidies, credit institutions but not too willingly expressed a desire to participate in it for several reasons: the complexity of the product, very low yield, long term loan, which may increase by reason of academic leave of the borrower or conscription.

However, the amount of educational crediting in Russia is close to the statistical error. In recognition of the banker, Aslan Karimov, in 2014 the Bank has issued at least 150 of such loans in 2015, and 59% more in 2016 — until less than a hundred, but the main demand is expected in the third quarter. However, we are talking about hundreds, not even thousands of loans.

Cheap and long

“Educational credit with government support provided under 7,625% per annum. Given the fact that the government compensates ¾ of the refinancing rate (7,875%), the Bank will receive only 15.5% per annum. By modern standards it’s a little” — the Director of the Institute of contemporary Economics Nikita Isaev.

“The students during their studies can choose to pay only the interest and repayment of principal to begin only after training. Term loans, thus, can be up to 16 years: it is unprofitable for banks to grant unsecured loans for such a long time,” said an expert on banking products portal.<url> Catherine Marchukova.

Not only the skepticism of bankers — the cause of almost complete absence of educational loans in the country. The students themselves do not rush to become borrowers for several reasons. “The scheme of education loan, used in Russia, yet has no big prospects of development. It assumes that after graduating, every citizen is to work and to give invested in education facilities. But look at the statistics of graduates: about 40-50% are not working in their specialty, and employment as a whole manages only 77%. That is, at the start of training employment prospects are not so obvious, why invest in their education ready-made units”, — says first Vice-President of the Russian club of financial Directors Tamara Kasyanova.

Beyond state programs, there are also the loans that banks call educational, but in fact we are talking about the usual no-purpose credits under ordinary double-digit interest rate.

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