ERASMUS+ Master Loans: EIF and the European Commission launch new initiative for students

The European Investment Fund (EIF) and the European Commission have launched a new initiative to provide a total of EUR3bn of loans to Erasmus+ Master students via financial institutions.

This new and first mandate from the Directorate General of Education and Culture (DG EAC) allows the EIF to provide capped guarantees and counter-guarantees to financial intermediaries extending loans to mobile students undertaking a master’s degree in another country taking part in the Erasmus+ programme. It is expected that 200,000 students will benefit from this new scheme by 2020. The Erasmus+ programme is an EU success story, helping students who study abroad to improve their knowledge and skills, preparing many of them for international careers; this new initiative within Erasmus+ will maximise the impact of EU resources to help raise skills levels in Europe, announced EIF.

EIF Chief Executive, Pier Luigi Gilibert said: “As confirmed in the Europe 2020 strategy, higher education is a driver of growth for Europe and this new initiative within Erasmus+ will encourage learning mobility in the EU. Student mobility is in the collective interest of the EU Member States and the Erasmus+ Master Loan Guarantee Facility will help to bridge the existing access to finance market gap”.

Tibor Navracsics, Commissioner for Education, Culture, Youth and Sport, said: “The European Commission is firmly committed to ensuring the long-term success of Erasmus+ Master Loans to support talented young Europeans who want to study for a Master’s degree in another Erasmus+ programme country.  I encourage banks across Europe to sign up to this new funding scheme. This will help us to offer young people more opportunities, enhancing their skills and fostering stronger economic growth”.

The EIF has opened a call for expression of interest to which eligible financial institutions (banks, guarantee institutions, funds etc.) can apply. After a thorough selection process, the EIF will select financial intermediaries which can then make the new finance available to students.