Starting February 1st, adults interested in improving their qualifications and skills can apply for preferential loans with partial forgiveness. In the first round, over 1,000 loans were awarded, totaling over PLN 7 million. In the second round, over PLN 12.5 million is available for distribution. Since June 2017, the partnership between the Regional Development Agency in Starachowice and the Cooperation Fund Foundation has been implementing the “Loans for Education” project, financed by the Knowledge Education Development Operational Programme 2014-2020. The project is a pilot project for a new form of financing adult continuing education. It is also one of the first examples in Poland of a new form of using EU funds – repayable assistance.
Under this nationwide project, adults (employed, self-employed, and unemployed) can apply for a loan of up to PLN 100,000 to finance postgraduate studies, courses, or training courses of their choice (excluding first, second, and third cycle studies), lasting no longer than 24 months.
The loans are interest-free and do not involve any additional costs (commissions, fees, etc.). The loans can cover the entire cost of the training/study. The repayment period is up to three years – repayments are made in equal monthly installments. Funds are transferred directly to the educational institution to finance the participant’s chosen form of education. Completing a degree or course is grounds for 20% of the loan to be forgiven. In practice, this means there is no obligation to repay the final loan installments. For unemployed individuals who take up employment during or after their training, or for individuals with incomes below the national average, 25% of the loan may be forgiven.
“The first round of applications presented a logistical and organizational challenge for us. The system we created proved effective and participant-friendly. However, we see a number of elements that can be improved, and we will be implementing them in the current round. The scale and, above all, the diversity of both loans and borrowers clearly demonstrate that this mechanism was and is greatly needed in the continuing education market,” said Jacek Ostrowski, Board Member of the Cooperation Fund Foundation.
Nearly 1,700 applications were submitted in the first round, with a total value of PLN 13 million. Over 1,000 loans were granted to adults across the country (applications were submitted by residents of over 500 municipalities). The largest loans granted totaled PLN 100,000 (co-financing a professional pilot course, the total cost of which was PLN 160,000). The smallest loan amounted to PLN 600 (a psychology course), and the average loan value was approximately PLN 7,200. Slightly more than half of the borrowers (52%) were women. It’s worth noting that almost one in ten loans was granted to unemployed individuals seeking to enhance their qualifications. Loans for postgraduate studies (approximately 40% of loans granted) and programming courses (38% of loans) were the most popular. “Assessing applications and granting loans under the project is a new and very interesting experience for the Agency, in part because this is the first time we are granting loans using an online system. The first recruitment confirmed that the loan application rules are simple and user-friendly for those seeking to improve their qualifications. In the next recruitment, we will introduce changes to make it easier for low-income individuals to obtain loans. I am confident that – as in the first recruitment – interest will be very high and we will quickly utilize the PLN 12.5 million allocated for loans,” says Ryszard Nosowicz, President of the Management Board of the Regional Development Agency Foundation in Starachowice.
The second recruitment for loan applications will begin on February 1, 2018, at 12:00 PM. Applications can be submitted exclusively through the online system at www.inwestujwrozwoj.pl. The website also contains the Loan Regulations and agreement templates, as well as the required information and documents for applications. The planned pool of funds for loans in this recruitment is PLN 12.5 million. Recruitment will last until May 31 this year or until funds are exhausted.
