The state loan fund for education

The state loan fund for education

Here is some good information on the state’s Education Loan Fund, which you may find useful.

First, let’s start with interest rates and interest rates

interest rate

You should first of all know that you can choose between floating and fixed interest rates from the Loan Fund. This interest rate on floating loans is determined on the basis of a selection of government certificates with the remaining duration from 0 to 3 months.

In addition, there is one percent of partial coverage of administrative costs and losses. The interest rate is fixed for one quarter at a time, on the basis of three months’ observation of the government certificates. The average interest rate on the government certificates in the first quarter determines the interest rate in the Loan Fund for the third quarter, the average interest rate in the second quarter determines the interest rate in the Loan Fund for the fourth quarter, etc.

The interest rate on fixed-rate loans, with a duration of three and five years, is determined on the basis of the interest rate on government bonds with a duration of three / five years.

You can also plus about 1 percent to partially cover administrative costs and losses

student loan

This interest rate is then fixed for one quarter at a time, on the basis of one month’s observation of the government bond yields. There is one month between the observation and effect period. Finally, the interest rate in January is determined by the average government bond rate in November.

Lawrence Schindler

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