Banks that have given loans to students would have a guaranteed return on those loans during their studies and for five years after their studies

  We, Lithuanian taxpayers, would be guaranteed to pay the profit. What a great offer for the banks ... 

"The draft provides that the interest paid on the tuition fees of state - subsidized loans, which is accrued during the academic year and within five years after the end of the studies, would be fully reimbursed to the borrowers in accordance with the procedure established by the Government. Such amendments were approved by consensus this week after submission, and the Government's conclusion was requested. The amendment to the Law on Science and Studies will be further considered by the Seimas committees. 

Vytautas Gapšys from Labor (Darbo, Lith.) Party who introduced the amendments, said that as the price of paid study places becomes more expensive, young people will have less opportunities to study, therefore the state should contribute by compensating the interest on study loans. 

He argued that this would not be a significant financial burden for the state, as the state can borrow on particularly good terms. "I believe that the current system, where individuals can take out state-subsidized loans, should be supplemented by another option, which is to reimburse interest in accordance with the established procedure. Such compensations would help increase the availability of studies and would not be a big burden for the state, ”said V. Gapšys. "As I said in the example, we borrow at minus 0.3 annual interest. 

In this case, if we are talking about students, they basically pay 3 percent annual interest. 

Transferring money borrowed from the state to students with interest compensation is beneficial because you provide education, access to education, essentially from borrowed money. I think that the state wins a lot here, but students also win, ”said V. Gapšys. Representatives of the Labor Party who initiated the amendments note that although students who actually receive loans can apply and are reimbursed for interest during their studies, if there are sufficient funds, interest reimbursement is not covered by law."