Government simplifies study loan remission for parents of disabled children
The government approved a bill to change the Study Allowances and Study Loans act as well as the Work Ability Allowance Act to the effect that parents of severely disabled children will be able to apply for a cancellation of study loan debt starting Jan. 1 next year.
According to a prognosis of the government, the parents of 293 severely disabled children will be able to free themselves of debt this way in 2018. Another 60 applications are then expected to come in every year after that. In 2016 there were 5,648 children in Estonia suffering from a severe disability.
According to the bill, parents will be able to file with the Social Insurance Board to have their study loans discharged. The board will then initiate and conduct the necessary procedure.
All the data the board needs to process such a request are already available in its database, including the medical confirmation of the child’s disability. Whatever data is still missing, the board will get from the Unemployment Insurance Fund.
The current situation demands of parents to approach the bank that originally issued the loan, which will then file for a discharge either with the Ministry of Finance or the Ministry of Education and Research.
The measure is expected to cost the state some €663,000 in 2018, and €130,000 a year after that.
Editor: Dario Cavegn
