In 11 years, less than half of the amount of the guaranteed student loans have been reimbursed to the state. Students refrain from borrowing money because of the high interest rates, although a total of EUR 20 million was earmarked for student loans in 2021. In 11 years, only 1,274 students have applied for a student loan.
Despite the state guarantee, few students apply for student loans, because of the high interest rates. They have to pay 7% interest rate, which equals the interest rate on a consumer loan, Alexander Uzunov from the National Representation of Student Councils told the BNR.
According to Ivan Stoykov, financial expert from the website My Money, it is unlikely that interest rates be reduced, because students may not be able to find a well-paid job after they graduate from the university.
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