FREQUENTLY ASKED QUESTIONS (FAQS)
1. What is the StudentAssist scheme?
StudentAssist is a financial instrument launched by the Malta Development Bank (MDB) in collaboration with the Ministry for European Funds and the Implementation of the Electoral Manifesto. It supports students who wish to pursue further or higher education, both in Malta and abroad, by providing affordable long-term loans under favourable conditions.
2. Who can apply?
The scheme is open to eligible students pursuing:
· Full-time or part-time courses,
· Distance learning or online courses,
· Internationally recognised certificates, diplomas, or degrees.
Applicants must be Maltese residents or individuals eligible to study under Maltese law.
3. What costs are covered?
The loan may cover a wide range of education-related expenses, including:
· Tuition fees;
· Accommodation costs;
· Subsistence and living expenses;
· Travel expenses related to study abroad.
4. What is the maximum loan amount and repayment period?
Students may apply for loans of up to €100,000, repayable over a period of up to 15 years.
5. What is the moratorium period?
Borrowers benefit from a moratorium on capital repayments – and also on interest, covering the full duration of the course and typically extending 12 months after completion.
This allows students to focus on their studies before starting to repay the loan.
6. Is there any interest subsidy?
Yes. During the moratorium period, the interest due while studying is covered or subsidised, significantly reducing the overall cost of the loan and making the scheme more affordable.
7. Is collateral required?
No. Thanks to the Guarantee, students are not required to provide collateral, an upfront contribution, or life insurance. This makes financing accessible even for students without substantial family support or assets.
8. How does the Guarantee work?
The Guarantee covers up to 80% of individual loans, encouraging banks to lend to students by reducing their exposure to risk. This guarantee is capped at 20% of the total bank portfolio, generating a multiplier effect of 6.25, making up to €6.25 million in financing available to students.
9. Where can students apply?
Interested students can visit APS Bank or Bank of Valletta (BOV) and request information about the StudentAssist product. These banks were chosen after a successful expression of interest. Bank representatives will guide applicants through eligibility, documentation, and loan terms.
10. Who funds the scheme?
The StudentAssist scheme is funded through ESF+ Programme financed under the 2021-2027 Programming Period, complemented by national funds. The Managing Authority has allocated €1.5 million to the MDB to implement this scheme.
11. What are the main benefits for students and families?
· Access to affordable loans with no collateral required;
· Subsidised interest during studies;
· Extended repayment terms up to 15 years;
· Support for both local and international education;
· Reduced financial pressure on families;
· Encouragement for young people to invest in their education and future careers.