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COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case HU-2020-18/717 – measures in Hungary

Interest-free student loans

Kamatmentes diákhitel

Country Hungary , applies nationwide
Time period Temporary, 01 May 2020 – 31 December 2020
Type Legislations or other statutory regulations
Category Measures to prevent social hardship
– Protection of vulnerable groups (beyond employment support)
Author Nóra Krokovay (KOPINT-Tárki) and Eurofound
Case created 17 April 2020 (updated 01 May 2020)

Background information

Under government decree 96, students of higher education and adult education may take out an interest-free loan to offset their living expenses during the COVID-19 pandemic. The measure was introduced as part of efforts to help families with little or no savings, as well as seeing students as a group vulnerable to losing their part-time jobs or not finding a job during the pandemic situation. The loan can be requested via the student loans provider Diákhitel Központ until 31 December 2020.

Content of measure

The amount of the interest-free loan for students in higher education is a one-off lump sum of HUF 500,000 (€1,429). Students in adult education courses organised by the Ministry of Innovation are also eligible, they can apply for an interest-free loan of HUF 1.2 million (€3,429). Students will have 12 months before they must start repayment of the loan, which can be over a period of 1 to 5 years, at their discretion. As part of this set of measures targeting students, the rules about losing students’ state scholarships on the basis of academic achievement will be suspended for the duration of the pandemic situation. Higher education students will not be required to pass language examinations during this period, either, and the existing targeted language exam loans will be converted to the new 0% interest loan. There are also suspensions introduced on the repayment of other existing student loans

Use of measure

No information to date

Target groups

Workers Businesses Citizens
Does not apply to workers Does not apply to businesses Youth (18-25)
Other groups of citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • N/A
  • Main level of involvement: Unknown

Involvement

N/A

Views and reactions

There was no involvement of social players in this measure.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      P - Education P85 Education

This case is not occupation-specific.

Sources

  • 10 April 2020: Government decree 96/2020

Citation

Eurofound (2020), Interest-free student loans, case HU-2020-18/717 (measures in Hungary), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.