State-Guaranteed Loans for Students

There are two kinds of state-guaranteed loans for students - study loans and student loans:

Study loans - for covering tuition fees at accredited higher education establishments (tertiary institutions) in Latvia and abroad.
Student loans - for the day-to-day needs of the student.

Swedbank issued new state-guaranteed loans for students in 2001, 2002, 2003, 2004, 2005, 2008 and 2009. If you’re a student who has received a state-guaranteed study loan at Swedbank, the information provided below will be useful for you!

Study loan Student loan
Loan disbursement For studies in Latvia: 2 times a year to school’s account
For studies abroad: 1 time a year to school’s account or to your Swedbank account
On 15th day of each month (except July and August) to account at Swedbank
Loan repayment during studies During studies and for 11 months after graduation you won’t have to pay anything (0% interest rate) Payment of interest (maximum of 5% per annum) starts with the next month after disbursement of the first portion of the loan amount
Principal repayment

Repayment of the loan principal starts from

  • the 12th month after graduation or from the 3rd month after discontinuation of studies.
Repayment period
  • 5 or 10 years - depending on the total amount of loan (study loan or student loan) paid out
Interest rate during repayment period

When repayment of the loan principal starts from the 12th month after graduation, the interest rate will be no more than 5% per annum. In the period from 1 January to 30 June 2017, the interest rates on student loans and study loans for borrowers that have started repayment of the loan principal are the following:

  • for borrowers with loans dating from 2001 - 2005: 5%*
  • for borrowers with loans dating from 2008 - 2009: 0%*

If studies are discontinued, then, pursuant to the loan agreement, the full interest rate will be payable for the received loans starting with the next month after discontinuation of studies. In the period from 1 January to 30 June 2017, the interest rates on student loans and study loans for borrowers expelled from school are as follows:

  • for borrowers with loans dating from 2001: 0.77%*
  • for borrowers with loans dating from 2002: 0.65%*
  • for borrowers with loans dating from 2003 - 2009: 5%*
Extension of repayment period

The loan repayment period may be extended by the time when:

  • you are in maternity or postnatal leave
  • you are in child care leave of up to 1.5 years and are not working full time
  • you continue studies towards bachelor’s, master’s, doctor’s or higher professional education degree or in residency training

As well as if you are officially unemployed, the loan repayment period is extended by time equivalent to the actual unemployment, but not by more than two years during the loan period.

Loan principal repayment by the state If you or your spouse gives birth to a child during time of receiving or repaying the loan, the state will, after graduation on the basis of an application, repay 30% of the outstanding student loan principal per every child born. If both parents are borrowers, the condition applies only to one of them (optionally).
The state may repay your study loan and/or student loan for you in case of you becoming employed by a government or municipal institution in a profession approved by the Cabinet (for details, see the Ministry’s of Education and Science Studies and Science Administration website).

* The loan interest rate is calculated based on the average EURIBOR rate in the last two weeks of December, which is -0.22%, plus the interest rate set in the loan agreement.

Extension of the loan repayment period and postponement of loan principal and interest payments

You are entitled to extension of the loan repayment principal and postponement of the loan principal repayment and interest payment in the events set out in the Cabinet Regulations of 29 May 2001 "The procedure of granting, repaying and extinguishing study loans and student loans out of the credit institution’s funds with a guarantee given on behalf of the state".

  • You are in maternity or postnatal leave (paragraph 75)

    Extension Principal repayment postponed Interest not accruing Postponement and extension period Required documents
    For the whole duration of maternity or postnatal leave (based on details shown on the sick-leave certificate B)
    • Application (at branch or a message to the bank via Internet Banking)
    • Sick-leave certificate B
  • You are in child-care leave of up to 1.5 years and are not working full time (paragraph 75)

    Extension Principal repayment postponed Interest not accruing Postponement and extension period Required documents
    For the duration of child-care leave of up to 1.5 years (based on the duration in the official letter issued by the employer or on the child’s date of birth)
    • Application (at branch or a message to the bank via Internet Banking)
    • If you were employed, then an official letter from your employer
    • If you were not employed - an official letter from VSAA confirming that social contributions are not paid, or the child’s birth certificate
  • You continue studies towards bachelor’s, master’s, doctor’s or higher professional education degree or are in residency training (paragraph 76)

    Extension Principal repayment postponed Interest not accruing Postponement and extension period Required documents
    Applies for study loans only For the time when you continue studies (based on official letter from school, which must be submitted every year)
    • Application (at branch or a message to the bank via Internet Banking)
    • Official letter from school confirming continuation of studies
    • Diploma must be submitted after graduation from the school where you continued your studies.

    Must be submitted every year until 15 Sept.

  • You are officially unemployed (paragraph 78)

    Extension Principal repayment postponed Interest not accruing Postponement and extension period Required documents
    For the duration of actual unemployment but not more than two years during the loan period
    • Application (at branch or a message to the bank via Internet Banking)
    • Decision/official letter on granting the status of an unemployed person
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