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Kyrgyzstan going to issue loans for education

Amendments to the Law On Education, initiated by MP Aaly Karashev, were submitted for public discussion.

The document provides opportunities for students to receive preferential educational loans with a grace period that allows them to start repaying the loan amount after receiving higher education.

«Amid the growing cost of university services, the problem of financing higher education in the country is becoming more urgent. Despite the fact that the cost of higher education in Kyrgyzstan is lower than in most CIS countries, in comparison with the middle income level, the payment of contractual training even in a state university may turn out to be a heavy financial burden for a middle-income family," the initiator argues.

Despite the active development of the banking sector in Kyrgyzstan, educational loans have not yet been widely spread. Most banks in the country don’t lend contract study at universities and institutes.

«Loans that are characterized in the services portfolio as «educational» are ordinary consumer ones, with a high interest rate and the absence of a possibility of deferred payment. Receiving such a loan, students are obliged from the next month to start paying off interest payments and the principal amount, even if they don’t have a source of income," background statement says.

«The inaccessibility of higher education also has its heavy influence on external migration. Thousands of secondary school graduates leave the country every year in search of earnings. Abroad, they become part of the lowest-paid and low-skilled labor force," Aaly Karashev said.

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