Interest payment cap introduced to cover student loans in Hungary

The government has decided to broaden the cap on interest payments to cover student loans, the minister of economic development said on Tuesday.

With the aim of protecting families and employees amid the current crises affecting Europe, the government previously capped interest payments on household loans and loans for small and medium-sized firms, Márton Nagy noted on the government’s Facebook page.

Now one type of student loan will be capped at 4.99 percent from January 2023, while another will be still available interest-free for students in higher education, he said.

Almost 500,000 people have taken advantage of student loans which have aided them to obtain of 250,000 diplomas, he said, adding that without government action the interest rate on a student loan would double, putting 100,000 people into a position of hardship.