What is an education loan?

For those who experience personal financial problems or cannot afford to pay tuition fees, have you ever heard about Student Loan?

Of course, education is very important for students' future. If you do not have scholarships and financial support from your parents, you will need to use your personal fund. Therefore, many students .prefer to have extra jobs during their studies in order to afford the tuition themselves.

However, most programs require quarterly, semi-annually, and year-end tuition payment, which can be a huge burden for students who are low-paid. Therefore, student loans are a good solution for students to pay tuition fees on time and avoid late payment fees

So what is a student loan?

Student loans are not a new thing, it is applied in many countries in the world, including Cambodia. A student loan is a loan agreement between a college student and bank for funding education and promises to be repaid when students graduate and have a paid job. However, student loans are also offered to students from many non-financial institutions, including governments, companies, NGOs, and universities, with different terms and conditions. While in Cambodia itself, most student loans are private which are provided by banks and universities.

Today, many institutions in Cambodia are offering student loans to students and student’s guardians with different terms and conditions. A General terms and conditions for student loan are as below:

Above 18 years old and have a clear permanent residence

Documents confirming the study from the vocational training institution or higher education institution and the transcript.

Receipts or letter confirming the tuition fee of the educational institution at the time of loan disbursement

With or without collateral (depending on the policy of each institution)

With or without guarantor (depending on the policy of each institution)

Note: The guarantors (if required) must be the guardians of the student with regular income from salary, business, or other sources of income that are legal and stable. Collateral (if required) must have sufficient value and must be accompanied by proper ownership. The interest rate, maximum loan size and tenure of the student loan varies depending on the policy of each institution. To find out more detail about the terms and condition of the student loan, please visit the links that are attached below the article.