Proposed revisions to Vietnam's student loan policy are expected not only to ease financial barriers but also to reaffirm the State's commitment to supporting young people throughout their educational journey and their path toward building careers and independent lives.

At the 13th National Congress of the Ho Chi Minh Communist Youth Union for the 2026-2031 term, Party General Secretary and State President To Lam emphasized: "No legitimate dream of young people should be left behind because of a lack of information, opportunities, support or confidence."

The message continues the Party and State's long-standing development philosophy of placing people at the center, education at the heart of development, and equal access to knowledge as a foundation, ensuring that the aspirations of young people are not held back by circumstance.

Against that backdrop, the draft decision on student credit prepared by the Ministry of Finance represents more than a revision of a financial assistance program.

Beyond safeguarding equal access to education, the proposed changes are intended to provide a stronger foundation for young people - whether they come from lowland or mountainous areas, or from advantaged or disadvantaged backgrounds - to pursue education, build careers and realize their ambitions through their own abilities and determination.

Student loans institutionalize the commitment to "leave no one behind"

The Party and the State have consistently identified education, training and human resource development as one of Vietnam's strategic breakthroughs. To ensure that no one is left behind during the country's development process and that no young person's aspirations are abandoned, a wide range of educational support policies have been introduced, with priority given to students from ethnic minority communities.

One of the most practical forms of financial support has been the concessional student loan program for disadvantaged students under Decision No. 157/2007/QD-TTg, later amended by Decision No. 05/2022/QD-TTg. After 19 years of implementation, the program has become a crucial source of support for generations of students pursuing higher education.

According to the Ministry of Finance, more than four million students from disadvantaged backgrounds have benefited from preferential loans since the policy was introduced.

As of May 31, 2026, total lending had reached VND92.532 trillion (US$3.5 billion), while outstanding loans stood at VND24.475 trillion (US$930 million) across 355,805 borrowing households.

The program has also maintained strong credit quality. As of May 31, overdue debt totaled VND64.9 billion (US$2.5 million), accounting for only 0.27% of outstanding loans, while frozen debt amounted to VND36.4 billion (US$1.4 million), or 0.15% of total outstanding loans.

The Ministry of Finance said the student credit program carries significant economic, political and social value and has received broad support from government agencies, local authorities and the wider community.

It has helped students from disadvantaged families continue their education with greater confidence, contributed to reducing school dropout rates, improved educational attainment, and supported poverty reduction and greater equality in education.

Existing policy no longer reflects rising living costs

Nearly two decades of implementation have demonstrated that the student loan program is far more than a concessional lending scheme.

Each loan not only helps a family overcome immediate financial difficulties but also opens the door for young people to continue their education, pursue meaningful careers and contribute to the country's development.

However, changes in socio-economic conditions have created new demands for policy reform. According to the Ministry of Finance, the current loan ceiling no longer reflects rising inflation, living expenses and tuition fees.

Estimates suggest that a student's total monthly living and tuition costs can reach approximately VND13.75 million (US$523), including around VND5 million (US$190) for living expenses and VND8.75 million (US$333) for tuition. Yet the current loan ceiling remains only VND4 million (around US$152) per student each month.

The current policy also leaves out certain particularly vulnerable groups. For example, some students whose father or mother has lost legal capacity are still ineligible for loans despite facing severe financial hardship.

This policy gap underscores the need to broaden support while ensuring that all disadvantaged groups have equal opportunities to pursue education. It also reflects the Secretariat's Directive No. 39-CT/TW of October 30, 2024, on improving the effectiveness of social policy credit in the new development period.

Reform aimed at long-term human development

The shortcomings of the current student loan program have been clearly identified, and the Ministry of Finance has proposed new measures to ensure that this socially significant policy addresses not only immediate financial needs but also Vietnam's broader human development goals.

Under the draft decision, the ministry proposes doubling the maximum monthly loan amount to VND8 million (US$304) while expanding eligibility to include additional vulnerable groups.

Viewed narrowly, the proposal represents increased financial support for students. Viewed more broadly, it reinforces the principle that spending on education is not consumption, but an investment in the country's future.

For students from ethnic minority communities, the value of concessional credit extends well beyond the amount borrowed. In many remote and mountainous areas, the journey to university remains financially challenging.

A timely student loan can mean that a young person does not have to abandon their studies, that a low-income family can continue supporting a child's education, and that another generation can continue pursuing its aspirations and contributing to society.

This also reflects the message delivered by Party General Secretary and State President To Lam at the 13th National Congress of the Ho Chi Minh Communist Youth Union. Stressing that today's young people possess great aspirations while facing growing pressures, he called for ensuring that no legitimate dream is left behind because of a lack of information, opportunity, support or confidence.

His message is not only directed at Vietnam's youth but also serves as a guiding principle for designing and improving policies that place people at the center of national development.

Sy Hao