Hungarian government supports graduates living abroad by redeeming their student loans

The government will offer to refinance the student loans of Hungarians abroad, the National Economy Ministry said on Friday.

With the measure, the government aims to support the return of young Hungarians living abroad, the ministry said. Draft regulations on the measure will be posted for the public on Friday, it added.

According to the draft, young Hungarians studying abroad for their diploma who return to Hungary to work could opt to refinance their foreign student loans, up to HUF 10m, with credit from state-owned student loan provider Diákhitel.

Diakhitel credit for tuition is interest-free, while free-purpose Diákhitel loans have a rate of 7.99pc at present. Young Hungarians who avail of the opportunity would be eligible for the same preferences enjoyed by other Diákhitel borrowers, including loan discharge and suspension of repayment for families with children, and tax-free repayment support from employers.

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