More than 35,000 university students in France are set to gain access to government-backed study loans with fewer requirements under a new agreement between the European Investment Fund (EIF) and French national investment bank Bpifrance.
The EIF will provide up to €28 million in “counter-guarantees” — a form of backstop that shares some of the risk on the loans — for France’s government-guaranteed student loan scheme, the EIF announced on Thursday.
The arrangement is intended to support loans that do not require a parental guarantee or other personal guarantee.
The EIF said the agreement is expected to support a total financing portfolio of €500 million.
Students could receive loans of up to €20,000, with repayment terms ranging from two to 10 years, and an average repayment deferral period of three years can be offered, new figures from the EIF show.
Who can access the loans and how the scheme works
The programme is available to students who are French citizens, or nationals of an EU country or another European Economic Area country, provided they can show two years of continuous lawful residence in France at the time the loan is granted, the EIF said.
The French government-guaranteed student loan is open to students under 28 and can be used to finance costs including tuition, computer equipment and textbooks.
Bpifrance administers the scheme on behalf of France’s Ministry of Higher Education, Research, and Space, and provides a 70% guarantee for student loans granted by participating banks.
Since the scheme was created in 2008, nearly 160,000 loans have been granted.
The EIF said the latest agreement was announced in Luxembourg during a “Got Skills? Level Up!” conference organised by the EIB Group with the European Commission and Bpifrance.
