Authorities to offer US-style interest-free student loans in Kazakhstan
According to Minister of Science and Higher Education of Kazakhstan, Sayasat Nurbek Kazakhstan will introduce new interest-free student loans. During a media briefing, he revealed that the government is launching several initiatives to expand access to higher education. For instance, in late 2024, the country will introduce interest-free student loans.
«Together with several commercial banks and our financial center, we have been working on this issue from a legal point of view. Once this process is completed, and it is already nearing completion, people will be able to take interest-free loans for higher education similar to those in the U.S.,» Nurbek highlighted.
The country’s authorities have also tested a differentiated grant program this year. Under this scheme, the government only partially pays for one’s education.
«If a school graduate’s score is high enough but they couldn’t secure a place in a chosen faculty due to high competition, we [the government] may cover 50% to 75% of the cost of education. Sometimes prospective students with scores of 100 points or even 115 [out of 140] do not receive a grant due to high competition for each place,» the minister explained.
There are additional tools facilitating access to higher education: the National Fund for Children program and the Keleshek voluntary savings system. The first involves accumulating money from the National Fund in special accounts opened for every child in the country. The second tool is expected to be launched by the end of the year to accumulate funds from various sources (parents, insurance companies and the government) in a unified accumulative system aimed at providing future access to higher education for every Kazakhstani child.
«Regarding the National Fund for Children, we already have some people who have decided to use their savings for education even if these savings are small – $300 to $500. Secondly, we are going to launch Keleshek by the end of the year. As a result, every prospective student in Kazakhstan will have enough money in their unified account to pay for education. If they win a grant, they can use their money to purchase a house or leave the money to their younger siblings,» the minister elaborated.
The Keleshek system was initiated by President Kassym-Jomart Tokayev. The idea is that the government makes an initial payment of $467 and then parents of a child save money in the account on their own. Along with investment income, the government will pay an annual premium of 5% to 7%.
In January 2024, the country embraced a national project called the National Fund for Children, distributing $100.52 to 6.9 million people based on 50% of the aggregated investment income the National Fund has gained over the past 18 years.
