Policy credit to support Nghe An students to go to school
Policy credit has supported tens of thousands of poor students in Nghe An to go to school over the years.
Support to school
With the spirit of not letting students in difficult circumstances drop out of school, the Social Policy Bank, Nghe An Branch, has brought capital to the people, providing learning opportunities for tens of thousands of poor students.
One early autumn day, we visited the family of Mr. Nguyen Chuong Thi, born in 1963 - a member of the savings and loan group in Luong Thien hamlet, Hien Son commune, Do Luong district. In the spacious, neat house shaded by fruit trees, we heard the couple share about the journey of overcoming difficulties to raise their children to study and grow up.
10 years ago, as a farming family with 5 children of school age, Mr. Nguyen Chuong Thi's family was facing difficulties on all sides. The family's main source of income was from production and livestock raising, and there was no other income. The family's meals were sometimes hungry, sometimes full. Because of the difficulties, the first child graduated from 12th grade and went to work for a living. Then, thanks to the Party and State's policies on preferential capital for the poor and policy beneficiaries, especially student loans, the family was able to borrow capital for their 4 children to study. Now, his 5 children have become successful, and the family's economy has risen out of poverty.
Mr. Thi shared: In 2011, the second child, Nguyen Thi Huyen Khanh, passed the entrance exam to Vinh Medical University. With the thought of "the family's economic difficulties, where can we get money to send our children to school?", but with the encouragement and evaluation of the savings and loan group of the neighborhood, the family boldly borrowed capital from the Student Program at the Social Policy Bank to invest in their children's education. In 2015, the third child, Nguyen Thi Hanh, passed the entrance exam to Vinh Pedagogical College, preschool department. In 2017, the fourth child, Nguyen Thi Truong, passed the entrance exam to the Logistics Academy; in 2019, the fifth child, Nguyen Thi Khanh, passed the entrance exam to Da Nang University of Medicine and Pharmacy.
Thanks to access to the Student Loan Program, the children can go to school and pursue their dreams, the family has less worries about paying for education, and less burden in life. Up to now, Mr. Thi's children have all grown up and have stable jobs.
Not only did he borrow capital from the Student Program, in 2016, Mr. Thi's family continued to borrow capital from the Do Luong District Social Policy Bank from the near-poor household loan program with an amount of 30 million VND. In 2022, the family continued to borrow capital from the clean water and environmental sanitation loan program with an amount of 20 million VND to drill a well and upgrade and repair the toilet. "Currently, the family has paid off all debts from the near-poor household loan program and the clean water and environmental sanitation program; the Student Program with a total loan amount of more than 300 million VND for 4 children, now gradually paying off the debt, the current outstanding debt is more than 140 million VND. From a poor family, thanks to the policies of the Party and the State, the family has escaped poverty, my children can go to school, and pursue their dreams," said Mr. Nguyen Chuong Thi.
Do Luong is a land with a tradition of studiousness, with tens of thousands of students studying in the district. In 10 years (2014-2024), the Do Luong District Social Policy Bank Transaction Office has disbursed VND 110 billion to 3,782 disadvantaged students to cover their study expenses; on average, each student is able to borrow VND 29.07 million. The total outstanding debt as of August 31, 2024 is VND 40.283 billion/750 households, with an average outstanding debt per household of VND 53.7 million.
Mr. Le Quang Hieu - Director of Social Policy Bank of Do Luong district
Nghe An is the province with the highest outstanding debt of student programs nationwide. In the province, there are many districts with large outstanding debt of programs such as Yen Thanh 55.6 billion VND, Thanh Chuong 43 billion VND, Do Luong 40 billion VND, Vinh 39 billion VND, Dien Chau 39 billion VND...
The effectiveness of policy credit for students
In order to prevent any student from having to stop studying because they do not have money to pay tuition fees, from the initial loan amount of only 800,000 VND, on March 23, 2022, the Prime Minister issued Decision No. 5/2022/QD-TTg amending and supplementing Decision 157/2007/QD-TTg dated September 27, 2007 on credit for students. Accordingly, the maximum loan amount for the student loan program is increased to 4 million VND/month, meeting the minimum cost needs for students to study.
The Party and State's policy of providing loans to students in difficult circumstances has truly been a lifesaver for poor students in difficult circumstances, demonstrating the superiority of the socialist regime in education and training. According to the report, in the period of 2014 - 2024, preferential credit capital has provided capital to 742,060 poor households and policy beneficiaries in Nghe An, of which 18,918 students from poor households, near-poor households, and households facing financial difficulties due to objective reasons have been supported with money to pay tuition fees, no student has had to drop out of school due to lack of money to pay tuition fees. In addition, during the Covid-19 pandemic, 10,866 students were supported with capital to buy computers and online learning equipment.
Particularly from the beginning of 2024 until now, loans from the student program are 76 billion VND, an increase of 31 billion VND compared to 2023. It is expected that from now until the end of the year, it will increase by 54 billion VND (an increase of about 85 billion VND for the whole year of 2024).
Many families shared that with the regulation that students must pay the principal and interest of the loan for the first time after completing the 12-month course; the principal is paid in 6-month installments, the interest is paid monthly, which also helps borrowers reduce the pressure of repaying the bank. During the process of borrowing money for their children to go to school, many families save money to pay off the debt at the commune transaction point and pay interest, deposit savings through the Savings Group and borrow the full amount every month. The students themselves are also aware of the meaning of this loan, so after finishing their studies, they also help their families pay off the bank debt.
Mr. Tran Khac Hung - Director of the Provincial Social Policy Bank said: Credit for students shows profound social significance, affirming the preferential policies of the Party and Government, and has created high consensus in the social community. The program has made an important contribution to the policy of developing, training and improving the quality of human resources to serve the country's industrialization and modernization. This is a highly socialized policy credit program, involving many levels, many sectors, many organizations and individuals from the central to local levels in mobilizing capital, organizing loans, collecting and handling debts. In order for the program to continue to be highly effective, authorities at all levels need to regularly review and promptly supplement poor and near-poor households, thereby having a basis for seriously implementing the confirmation of families eligible for student credit loans, promoting the positive values of the program.
