Erasmus+ Master Degree Loans
Erasmus+ Master Degree Loans are EU-guaranteed loans with favourable pay-back terms that allow prospective students to finance their Master degree studies in an Erasmus+ Programme country. The scheme is designed to provide postgraduate students with the means to pay their tuition and living expenses - thereby allowing individuals to focus on their degree. The programme aims to be as inclusive as possible, working under the following guidelines:
- No need for collateral from students or parents - ensuring equality of access.
- Favourable, better-than-market interest rates.
- Pay-back terms that allow graduates up to two years to find work before beginning repayment.
The European Investment Fund (EIF) and the University of Cyprus have launched this new pilot scheme, allowing eligible students to use the Erasmus+ Master Degree Loans and to undertake their studies without having to worry about tuition fees and other costs. Only after they finished their studies students will have to start reimbursing the money. This agreement will support students resident in any of the Erasmus+ Programme Countries to move to Cyprus and enroll in a Master’s programme at the University of Cyprus.
The new EUR 4 million pilot scheme is expected to benefit more than 240 master students to enroll in the University of Cyprus (70 students in 2018, 80 in 2019 and 90 in 2020). The University of Cyprus will not require any collateral or third party guarantees and will offer the new programme at favourable conditions. The agreement between the EIF and the University of Cyprus is the first of its kind in Cyprus and benefits from the Erasmus+ loan guarantee scheme, funded by the European Union and managed by EIF.
The EU Erasmus+ guarantee scheme allows EIF to provide capped guarantees and counter-guarantees to financial intermediaries which in turn grant loans to students who will move to undertake a full Master's degree in another country taking part in the Erasmus+ programme.
The University of Cyprus is providing loan equivalents for incoming students from all other Programme countries to study for a Master degree course. Instead of a financial loan, the University of Cyprus is offering in-kind services (tuition fees, housing costs, etc.) which can be repaid after graduation:
- up to €12,000 for a 1-year Master.
- up to €18,000 for a 2-year Master.
- This money is intended to cover tuition fees and accomodation expenses at the Hall of Residence/Apartments of the University of Cyprus.
- The Final Recipient is a resident of a Programme Country.
- The Final Recipient shall undertake a Master’s Degree at a Recognised Higher Education Institution in a Programme Country which is neither (i) the Final Recipient’s country of residence (except if the Final Recipient represents that it has changed its residency within three months prior to its application for the Final Recipient Transaction with the view to pursue the Master’s Degree); nor (ii) the country in which the Final Recipient obtained his/her qualifications granting access to the Master’s Degree; and
- Has not already entered into a student loan covered by the Erasmus+ programmes with an entity other than the Financial Intermediary.
- You must be a resident of a Programme Country; Cyprus must not be your country of residence (except if you represent that you have changed your residency within three months prior to this application with the view to pursue the Master’s Degree).
- You must hold a recognised first cycle (undergraduate Bachelor) qualification.
- You have not obtained your academic qualifications granting access to the Master’s Degree from any Institution in Cyprus.
- You should undertake a Master’s Degree at the University of Cyprus.
- You have not already entered into a student loan covered by the Erasmus+ programme with an entity other than University of Cyprus.
- Students only studying abroad for part of their Master's may still qualify for an Erasmus+ grant.
Transaction Eligibility Criteria
- Does not request or require that any collateral or parental or other third party guarantee be provided in order to secure the Final Recipient Transaction, other than a personal guarantee from the Final Recipient.
- Has a minimum scheduled final maturity of six years after the end of the Master’s Degree.
- Provides that the repayment by a Final Recipient of the Final Recipient Transaction shall commence two years after the completion and award of the Maste's degree.
- Provides the Final Recipient with the option to request a Repayment Holiday at least once during the term of the Final Recipient Transaction, unless such a delay in repayment by a Final Recipient is not permitted by applicable law, in which case a Final Recipient shall instead be entitled to make Nominal Repayments in respect of the Final Recipient Transaction during the Repayment Holiday.
- Provides that no penalties for early total or partial repayment by the Final Recipient of amounts outstanding under the final Recipient Transaction shall be applied.
- Provides that in case of death or total permanent disability of the Final Recipient, the Financial Intermediary shall be obliged to write off entirely the Final Recipient Transaction and shall not have recourse to the estate of the Final Recipient or any other assets, including operating any set-off between accounts.
Provides that unless specified otherwise, the Financial Intermediary in respect of the transaction agrees to the restructuring of a Final Recipient transaction such that the amounts scheduled to be paid, by the relevant Final Recipient in respect of such Final Recipient Transaction is reduced, in order to improve the collectability of the claims arising from such Final Recipient Transaction.
- Shall not be affected by an Irregularity or fraud.
- Prospective students who are interested in obtaining finance can get further information at: https://ec.europa.eu/programmes/erasmus-plus/opportunities-for-individuals/students/erasmus-plus-master-degree-loans_en.
Time of Compliance
Final Recipient Transactions must comply with the Eligibility Criteria at all times while included in the Portfolio, provided that the requirements set out above, are only required to be satisfied at the date of the agreement evidencing the relevant Final Recipient Transaction.
How to Apply
You have to apply online to the University of Cyprus by submitting the following documentation:
- Submit an application.
- Submit a certificate of completion of your Bachelor-level degree, prior to the Master degree you had been accepted for.
- Submit a certificate verifying your permanent address (i.e. council tax, utility bills, bank statements, lease agreement or residence ownership).
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