Student loan: when it's worth it and when it's better to save for your education yourself

      01 September 2025 11:31

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      Higher education is expensive today. The cost of a year of study ranges from ₽80,000 in the regions to ₽500,000+ at capital universities. Many applicants do not have that kind of money.

      With a stable income and reasonable expenses, you can always save. The online financial literacy magazine Halva Media explains how to do this without tears and deprivation. If you don’t have savings, try borrowing from a bank. We explain the advantages of an education loan.

      What an education loan is

      It is a targeted loan to pay for university tuition. The bank transfers the borrowed funds directly to the university. Interest on such a loan is lower than on a consumer loan.

      Sometimes part of the interest is subsidized by the state, and the debt can be repaid after finishing studies.

      When it’s advantageous

      You can take out an education loan if you need to study now and don’t have time to save. For example, you were admitted to a paid program at a prestigious university or found a professional development program that opens access to a high-paying job. If you postpone your studies, there may not be a second chance.

      In 2025, under the state program, education loans have an interest rate of 3% per annum. The rest is compensated by the state. This is almost half the inflation rate.

      During the entire study period you pay part of the loan interest; for almost a year after graduation you pay the interest in full; and after that you have 15 years to repay the remaining debt.

      For example: a student takes a loan of ₽400,000 at 3% per annum for 4 years of study. In the early years he pays only about ₽300 per month. Later — about ₽900. After graduating, he finds a job with a salary of ₽60,000 and pays off the main part — roughly ₽3,000 per month until the end of the contract.

      It is important to remember that if you are expelled or you drop out, the interest rate will increase.

      When it’s better to save

      The authors of Halva’s financial blog recommend avoiding debt and trying to save for studies if:

       - The loan rate is close to consumer loans (15–20%), and the overpayment amounts to half the cost of tuition.

       - You are not sure about the profession. Is there a risk you’ll abandon your studies? Then an education loan will become an unbearable burden. There’s no point in risking it. Better think about what work you want to devote your life to, and meanwhile save money.

       - There are still several years before admission. You or your parents have a stable income that allows you to save for studies. Then, by putting aside, for example, ₽10,000 per month, in a year you will accumulate ₽120,000 for the first year.

      Which decision to make

      First of all, find a bank that will issue an education loan with state support. Use an online calculator on the website to calculate the monthly payment and the total overpayment for the entire loan term.

      If the numbers do not suit you, assess the urgency of the studies. Can you start later without loss of quality? Then we recommend saving.

      Can’t postpone? Contact a bank representative to find out all the loan details, learn about discounts, penalties and other conditions. Remember that the monthly loan payment should not exceed 20% of your income.

      An education loan is a tool that will allow you to obtain the profession of your dreams. The main thing is to use it wisely. Do not make a decision about a loan based on emotions. Weigh the pros and cons and analyze how stable your income is.

      Advertisement. PJSC Sovcombank. TIN 4401116480 halvacard.ru

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