3 thousand former students did not return 2.6 million. Euro: threatened in the future

According to the report, the State Study Fund has been supporting study loans in Lithuania since 1998. Under this program, students can receive a loan to pay for their studies each semester. The State guarantees concessional loans for 15 years, and repayment of installment loans should only begin after 12 months. After graduation.

The number of borrowers has increased 2.5 times a year: they “forget” to return several tens of euros a month

Depending on the chosen specialty, one-year studies in higher education institutions in our country cost from 1500 to 16 thousand. Eur, ® the average amount of repayment of a loan per month does not usually exceed several tens of euros; repaying this amount each month is not usually a problem for any specialist with higher education. However, at present, the number of people who are late in the repayment of their loans for studies has reached the thousands, and as of 2019 it has multiplied by more than 2.5: from 1,159 to 2,945, in addition, 1,087 Alumni have more than one debt for their studies and the total debt is 4,032.

Most of the debtors live in Vilnius (577) and Kaunas (398) counties, but the largest outstanding amount, 1807 euros, stands out in Šiauliai county. population. Residents of the counties of Panevėžys (1793 Eur), Kaunas (1470 Eur) and Vilnius (1406 Eur) continue to be classified according to the amounts outstanding per debtor.

According to Creditinfo Lietuva, most of the debt for studies has been accumulated by people between 28 and 36 years old. people with a total outstanding amount of 1.8 million. EUR. “We assume that these borrowers have not yet had to use other lending methods, so they have allowed themselves to ‘forget’ about the repayment of the student loan. However, such behavior may be bitter in the future,” says the head of the bureau of credit.

Often times, it’s the student loan that starts your credit history.

Credit bureau experts note that young graduates often underestimate their commitment to repaying a student loan, creating a negative financial reputation early in their independent lives.

Aurimas Kačinskas, director of Creditinfo Lietuva, cautions that borrowers applying to a credit bureau are often surprised that information about a student loan that is not repaid on time is recorded in a unified system used by most institutions. of credit. These residents remember their “forgotten” loan only when they decide to buy a more expensive item, car, or home in installments and receive a negative response.

Aurimas Kačinskas warns that, for most young people, it is the student loan that becomes the first financial obligation from which the story of a lifetime of solvency begins. An additional personal credit history depends on the timely payment of interest and repayment of the loan in installments. This, in turn, will determine whether and under what conditions creditors will agree to lend to this person in the future.

“The better the history of financial obligations, the faster, over a longer period of time and with a more favorable interest rate, you can buy items in installments. Financial relationships with institutions and other people for the rest of your life depend of the timely payment of the student loan, ”says a representative of the credit bureau.

Financial strength is being checked more and more frequently

As the economic education of the population increases, the financial strength of other people is increasingly being asked to demonstrate this. For example, apartment owners request to show a personal statement from a credit bureau to ensure that tenants are punctual and can pay on time. The same principle is followed by nursing families who want to make sure they invite an honest person to take care of the children. Having a negative credit history will make it difficult to use the services of telecommunications companies, purchase telephones or computers in installments. Banks or leasing companies may impose higher requirements on down payment and interest, require pledging of assets, or provide collateral from another person with a positive financial reputation.

“In all cases, if for objective reasons you cannot pay the monthly student loan installments on time, we recommend that you notify the credit institution and draw up an individual loan repayment plan,” advises the head of Creditinfo Lietuva.