Government reduced interest rates on education loans to 3%

MOSCOW, Aug 25 (PRIME) -- Russian Prime Minister Mikhail Mishustin has signed a ruling to cut interest rates on education loans to 3% from more than 8% and increase maturity to 15 years from 10 years, the government said in a statement on Tuesday.

“Students that are getting education on a paid basis will get access to an education loan at a fixed rate of 3% annually. … The maturity of an education loan is expanded to 15 years from 10 years after the grade period ends, which will reduce the amount of monthly installments. Besides that, the rate of 3% can be expanded on a loan received before the ruling comes in force. One would need to file a request to a bank to do so,” the statement read.

The ruling also expanded the grace period for the loan to 9 months after graduation from 3 months. Students would only pay interest on their loans during education and grace periods.

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