New Low-Interest Student Loan Policy Empowers Vietnam’s STEM Sector
Vietnam’s government has launched a groundbreaking new Student Loan policy for students in Science, Technology, Engineering, and Mathematics (STEM), offering low-interest financial support specifically designed to ease economic pressure and strongly empower young talents to pursue education, research, and innovation without facing prohibitive financial barriers.
Decision No. 29/2025/QĐ-TTg, officially issued on August 28, introduces this crucial new credit policy, which makes loans available to both undergraduate and postgraduate students, including those pursuing master’s and doctoral degrees within STEM disciplines.
The purpose of the loans is comprehensive, covering not only the immediate tuition fees but also necessary living expenses and other essential educational costs throughout their academic careers.
The decision has been universally hailed as a vital measure to significantly ease financial burdens and provide fresh motivation and opportunity for the tens of thousands of students engaged in these fields, which are considered critical for Vietnam’s future economic growth.
Pham Thanh Huyen, head of student affairs at Hanoi University of Science and Technology (HUST), spoke enthusiastically about Decision No. 29 at a recent meeting with incoming students.
Huyen noted that approximately 90 per cent of all students at HUST are enrolled in STEM programmes, and a significant portion of this population comes from rural areas.
This means these students face not only the direct costs of tuition but also the exorbitant high living expenses associated with moving to and residing in the city, creating a dual financial hurdle.
Addressing Financial Barriers to Critical STEM Education
The new government policy directly addresses a long-standing challenge for high-achieving students from financially strained backgrounds, shifting the focus from income-based eligibility to strategic national investment in STEM talent, while simultaneously drawing on best international practices for loan repayment.
Huyen, who has extensive experience in student support and has studied various government funding policies globally, noted the high effectiveness of student loan models in other countries that allow students to focus on their studies now and defer repayment until after they secure employment.
She expressed the collective relief of the academic community, stating, “It has long been our dream to see similar policies implemented in Vietnam, to give hope and opportunity to students from difficult backgrounds. Now, with Decision No. 29, we are very close to realising that dream.”
Previously, eligibility for loans from the Vietnam Bank for Social Policies (VBSP) was strictly limited only to students from officially designated poor or near-poor households or those facing extreme financial difficulties, with an annual interest rate of 6.6 per cent.
The new policy dramatically broadens access.
Huyen captured the feeling of excitement, sharing, “Our colleagues and I are thrilled, not just for our students and their families, but also as educators. Many families with two children in school are facing tremendous financial pressure.”
Nguyen Viet Anh, a HUST student from Hung Yen province, shared his personal relief, explaining that while his family was not officially categorized as poor, their income was barely sufficient to cover basic living expenses.
He noted that STEM majors inherently require a greater financial investment beyond just tuition and living costs, including expenses for educational equipment, specialized courses, and substantial costs associated with research and practical projects, all of which the new loan will now help cover.
Proactive Implementation and Long-Term National Strategy
Universities and financial institutions are proactively collaborating to ensure students can access the new loan package with ease, highlighting the policy’s design to not only provide financial relief but also to serve as a long-term strategic lever for national goals in science, technology, and digital transformation.
HUST immediately took steps to facilitate student access to the new loan package.
Upon the issuance of Decision No. 29, the university quickly coordinated efforts with VBSP to launch extensive communication campaigns via its official website and various social media platforms.
Furthermore, HUST leadership invited VBSP officers directly to the campus to introduce the policy in person and provide detailed, in-depth guidance to students and their families.
The Student Affairs Office has already received numerous letters from students expressing keen interest in applying for the loan, confirming the high level of need and the immediate positive impact of the program.
Huyen confirmed the practical benefit, stating, “With this new policy, most first-year students at our university will now qualify for loans from VBSP to cover tuition fees and living expenses of up to VND5 million ($200) per month, at a highly preferential interest rate of 4.8 per cent, per year.”
She expressed the belief that this financial support will naturally lead to a significant increase in the number of students choosing to pursue STEM disciplines, ultimately helping the country achieve the national strategic target of having 35 per cent of all students enrolled in STEM fields.
For students like Viet Anh, the loan program represents more than just financial aid, as he put it, “It’s not just a loan, it’s hope.”
Le Thi Minh Hai, a VBSP specialist, elaborated that the loan term is generous, including the disbursement period plus 12 months after graduation, in addition to the full repayment period.
For a typical five-year STEM course, a student could be granted a loan term of up to 11 years, demonstrating the policy’s long-term focus.
The policy also includes a crucial mechanism allowing VBSP to approve debt rescheduling in cases of hardship, providing students with peace of mind throughout their academic journey and their early careers.
