On Monday, March 11, a press conference was held at the Medical University of Warsaw, organized by the Ministry of Investment and Development. During the meeting, Minister Jerzy Kwieciński officially announced the launch of the next round of applications for the “Loans for Education” project, operated by the Cooperation Fund Foundation and the Regional Development Agency Foundation in Starachowice. The second round of applications for the project will begin on March 18th. All interested individuals will be able to apply for interest-free loans with partial forgiveness. PLN 10 million has been allocated for loans in this round.
“The number of people in Poland improving their skills through courses and training is increasing year by year. Loans are a tool that supports this process. This is evidenced by the success of previous editions of the project, in which over PLN 27 million was distributed for nearly 3,000 loans. I observe this phenomenon with satisfaction, because better adapting education to the needs of the modern economy is one of our priorities,” said Minister Jerzy Kwieciński, adding that the Ministry of Investment and Development is conducting a number of activities aimed at developing continuing education and increasing adult participation in education.
One such initiative is the “Loans for Education” project, implemented since June 2017 by the Partnership of the Regional Development Agency Foundation in Starachowice and the Cooperation Fund Foundation, financed by the Knowledge Education Development Operational Programme. The project is a pilot project for a new form of financing adult continuing education and an excellent example of repayable assistance in action.
Invest in development!
As part of this nationwide project, adults (employed, self-employed, and unemployed) can apply for a loan of up to 100,000 PLN to finance their chosen postgraduate studies, courses, or training (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 3 years – repayments are made in equal monthly installments. The funds are transferred directly to the educational institution to finance the participant’s chosen form of education. Completion of the studies or course itself constitutes grounds for 20% of the loan to be forgiven. In practice, this means there is no obligation to repay the final installments. For unemployed individuals who take up employment during or after training, or for individuals with incomes below the national average, 25% of the loan amount may be forgiven. Nearly 1,200 borrowers have already benefited from the forgiveness—effectively reducing the training fee by 20-25%.
“The key elements of the loan cited by applicants include: accessibility—this program is for everyone, regardless of their personal or professional situation; flexibility—loans allow for personal development in every area and field; and simplicity—practically everything can be arranged online. I am convinced that interest in our offer will grow,” said Jacek Ostrowski, Member of the Management Board of the Cooperation Fund Foundation.
We Have a Good Experience
In the first and second rounds, 5,000 applications were submitted, with a total value of PLN 45 million. Nearly 3,000 loans were granted, benefiting adults from across the country. The largest loans granted totaled PLN 100,000 (co-financing a professional pilot training course or an MBA abroad). The smallest loan amounted to PLN 600 (a psychology course or Excel training), and the average loan value was approximately PLN 8,200. It’s worth noting that almost every seventh loan was granted to unemployed individuals seeking to enhance their skills. Loans for postgraduate studies and programming courses were the most popular.
The next round of applications will be in the second half of March.
In the first and second rounds, all funds received by operators (i.e., the institutions distributing the funds) from the Ministry of Investment and Development were used. Therefore, the current round will be based on funds repaid by borrowers from previous rounds. “I am very pleased that in the previous call for proposals, the Ministry decided to increase project funding so that we could extend loans to all eligible applicants. The third call, which is now being launched, is based on our experience in evaluating several thousand applications, and I am confident that borrower service will be even more efficient,” says Ryszard Nosowicz, President of the Management Board of the Regional Development Agency Foundation in Starachowice.
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The call for loan applications will begin on March 18, 2018, at 12:00 PM. Applications can only be submitted via the online system available at www.inwestujwrozwoj.pl. This website also contains the current Loan Regulations and agreement templates, as well as the required information and documents for applications. The call for proposals will continue until funds are exhausted.
