Students to get up to €15,000

Students will be able to borrow up to €15,000 without parental guarantors from mid September.

According to La Tribune the minister for higher education Valérie Pécresse said the new measure would come into force within a couple of weeks.

Two financial groups, la Banque Populaire et Cetelem (group BNP Paribas), will be the first to loan the money.

While the terms of the loan have not yet been released, it will apply to all those signed up to higher education courses.

The state will act as guarantor of up to 50% of the loan to the banks if a student cannot pay back the money. The banks themselves will decide the sums that students will be able to borrow.

President Sarkozy promised the introduction of such loans during his presidential campaign.

The process of guaranteeing the loan will be overseen by Oséo, a group which already lends to small and medium sized businesses in France.

Photo:Alexander Redmon