The Malta Development Bank has launched StudentAssist, a new scheme designed to help students pursue their studies with greater financial flexibility and less burden.
What is StudentAssist?
StudentAssist combines two powerful financial tools to make education more accessible:
• Interest rate subsidy: No interest payments during studies, making the loan more affordable from day one
• Bank guarantee: We absorb most of the risk, making it easier for students to secure financing from commercial banks
This blended approach means better terms, easier access, and more support as students focus on their education.
Backed by EU and National Funds
The Ministry for the European Funds and the Implementation of the Electoral Programme has secured €1.5 million in EU and national financing specifically for StudentAssist, ensuring strong support for Malta’s students.
How It Works
No upfront payments while studying. Students can focus on their education, not on loan repayments. With flexible repayment options and low interest rates, finances can be managed on their own terms after graduation.
Study anywhere. Whether pursuing higher education in Malta or abroad, StudentAssist covers tuition fees, accommodation, and other study-related expenses.
MDB-backed security. With support from the Malta Development Bank and backing from EU and national funds, students can trust that this scheme is designed to help them succeed.
Simple application process. Interested students may contact APS Bank or Bank of Valletta (BOV), the MDB’s official intermediaries for StudentAssist. They will guide students through the process.
Building on Proven Success
StudentAssist follows in the footsteps of MDB’s successful education schemes, FSMA and FSMA+, which have supported nearly 800 students with over €33 million in total financing. These schemes helped students cover tuition, accommodation, and education costs averaging €40,000 per student, while reducing the financial pressure on families and encouraging young people to pursue their ambitions locally and abroad. StudentAssist takes that commitment further, offering enhanced support for the next generation of students.
| Terms & Conditions | |
|---|---|
| Product Outline | StudentAssist is targeted towards students aiming at furthering their educational attainment. The scheme is partly financed under the ESF+. |
| Objective | StudentAssist seeks to support students in pursuing higher level of studies at internationally recognised institutions by facilitating access to more affordable financing. StudentAssist will be made available to students through MDB’s intermediating partner/s which shall be announced following the finalisation of the selection process. |
| Structure | The MDB provides a First Loss Guarantee covering 80% of all individual loans under the scheme which is capped at 20% of the commercial bank’s portfolio earmarked for such loans, generating a multiplier of 6.25. The financial instrument is divided into two elements: (i) Guarantee element: portfolio capped financial guarantee providing credit risk coverage on a loan by loan basis for a portfolio of newly originated eligible loans; and (ii) Interest rate subsidy element: the interest rate subsidy will be utilised to cover all the interest incurred during the moratorium period plus one year of each Eligible Loan. |
| Banking Facility | The maximum size of eligible loans guaranteed under the facility is €100,000, with a maximum loan term of up to 15 years, including the moratorium period. No minimum loan size is applicable. |
| Loan eligibility | The loan should be tied to students pursuing a study programme which is an accredited course in MQF levels 5, 6, 7 and 8, as well as internationally recognised certificates. The loans are available for full time and part time studies. The loan will finance tuition fees, living expenses, accommodation fees, transport expenses, textbooks and related expenses. |
| Eligible applicants | The applicant has to be a Maltese citizen; or national of an EU/EEA Member State provided that such person has obtained permanent residence in Malta or is in Malta exercising his/her EU Treaty rights as an employee, self-employed person or person retaining such status. The applicant can also be a third country national who has been granted long-term residence status in Malta. |
| Benefits | A maximum term of capital moratorium that covers the term of the course plus an additional twelve months, subject to a maximum moratorium period of five years and terms and conditions related to the loan amount and course period. No interest during the moratorium period. The interest due during the moratorium period is fully covered by an interest rate subsidy, placing no payment obligation on the student during this period of low or no income. Attractive interest rate, no collateral or upfront contribution shall be requested by the partnering financial intermediary. |
| Application process | The scheme is available through MDB’s partnering financial intermediary – APS Bank and Bank of Valletta |
