The Hungarian government has decided to broaden the cap on interest payments to cover student loans.
Márton Nagy, the minister of economic development, noted that the government previously capped interest payments on household loans and loans for small and medium-sized firms which will now be extended. Now one type of student loan will be capped at 4.99% from January 2023, while another will be still available interest-free for students in higher education, he said. Almost 500,000 people have taken advantage of student loans which have aided them to obtain 250,000 diplomas, he said, adding that without government action the interest rate on a student loan would double, putting 100,000 people into a position of hardship.