What is the Solidarity Fund?
The credit that the state universities grant to the students of the universities of the Council of Rectors , who for socioeconomic reasons are prevented from paying in whole or in part the fee for the degree they are studying.
What requirements must be met to request this university credit?
- Being Chilean
- Enroll in one of the 27 universities of the Council of Rectors.
- Not having a professional title.
- Have an average score on the PSU equal to or greater than 475 points.
- That academic quality makes you worthy of credit.
- Prove a socioeconomic condition that prevents the total or partial payment of the fee and present the corresponding documentation. Via the Internet, the single socioeconomic assistance form (FUAS) must be completed. Then you have to present family, property and income history so that each university evaluates the student’s situation and decides on their credit application.
What is the amount granted by the Solidarity Fund credit?
The amount is variable, as each university analyzes the applicant’s background. It is possible to obtain up to 100% of the tariff.
Once the credit is approved, does it finance the entire degree?
No, the credit has an annual duration, so it must be requested every year if the student requires it.
When does the credit begin to be paid?
Two years after graduation, with an interest of 2% per year. The payment is based on 5% of the debtor’s income.
What happens if I am delinquent in the payment of the solidarity loan?
If as of June 30, 2011 you were delinquent in this type of credit (or in its previous version: the University Credit) and you have never reprogrammed it, you can benefit from the reprogramming established by Law No. 20,572. According to this rule, the creditor establishment must publish a list with the beneficiaries of the rescheduling and the deadline for them to reschedule. Those who must have previously registered with the credit administrator to qualify for the benefit. The balance of the debt must be paid in annual, equal and successive installments, with annual interest of 2%, which should not exceed 10 installments, if the amount of the rescheduled debt is equal to or less than 150 UTM, or 15 installments , if the amount of the rescheduled debt is greater than 150 UTM. It will also be possible for the debtor’s employer to deduct the fees from their remuneration, and for the SII to deduct the unpaid amounts from the annual income tax refund. The law also provides benefits, such as discounts on criminal interest if 50% of the balance is paid in advance.
What happens if I don’t pay the credit?
According to the law, you will have a penal interest of 1.5% for each month that you are late in paying the loan. The General Treasury of the Republic will retain the annual return of income tax and will join a public list of defaulters. This, regardless of what is stipulated in the credit agreement that has been signed with the university.
Default threatens the granting of loans to other students, since the Solidarity Fund is nourished by the payments of its debtors.
What is state guaranteed credit?
They are credits, granted by financial institutions, that have a total or partial financing guarantee that the State grants to credits to finance higher studies granted by financial institutions, when certain requirements are met. This type of credit is also known as “state endorsed credit.”
What requirements must students meet to qualify for a credit with a state guarantee?
- Be Chilean or foreigners with permanent residence.
- That the socioeconomic conditions of the family prove it.
- Demonstrate sufficient academic merit upon entry and during the career.
- Sign a mandate authorizing the retention of the money owed to the financial institution granting the loan, by the debtor’s employer.
- Not having used this credit or the credit from the solidarity fund before.
Be enrolled in an undergraduate degree from an institution of higher education that:
- Belongs to the Council of Rectors, private universities, professional institutes or technical training centers. Also, the parent schools of the Armed Forces, Carabineros and Investigations.
- Are officially recognized by the State.
- Be autonomous.
- Select your students according to their PSU score, when applicable.
- Participate in the Administrative Commission of the Credit System.
- Use the contribution granted by the State exclusively for institutional development purposes.
- Guarantee the risk of dropping out of studies by the student.
What is the Administrative Commission of the Credit System for Higher Education?
The Administrative Commission of the Credit System for Higher Education (Comision Ingresa) is a body that regulates the credit system with State endorsement and is responsible for:
- Prepare the selection process for beneficiary students.
- Request the constitution of guarantees by higher education institutions that support the student against the financial system.
- Define the interest rate by which the credits will be governed.
- Tender portfolios in the financial system.
What is the amount of this guarantee?
Up to 90% of the capital, plus the interest on the credit granted by the financial institution.
Once the guarantee is approved, does it last the entire race?
No. For its renewal, the socioeconomic situation that motivated its delivery must be maintained and the student must maintain their academic merit.
When does the credit begin to be paid?
18 months after completing the study plan, with a maximum payment period of 20 years.
What happens if I don’t pay this guaranteed credit?
If it is not paid because the employer does not withhold the worker’s wages and must do so, or withholds them and does not pay, they will be fined 1 UF per month, plus current interest, increased by 50% if there is more than 90 days late. The General Treasury of the Republic may withhold the annual return of income tax.
How much is the interest on this loan?
With Law No. 20,634 , of October 4, 2012, the interest on state-guaranteed credit fell from approximately 6% to 2%. Those who took these credits before December 31, 2011 and from 2012 onwards are benefited by the reduction in interest. This measure implies a decrease in the fee they must pay.
The difference between the bank’s original interest rate and 2% is paid by the State. A regulation must regulate this matter.
When is the interest reduction effective?
The interest reduction is effective automatically for students who already pay the loan with a State guarantee.
The Ministry of Education and the Income Commission, which regulates credit with the State’s endorsement, must develop regulations to make this law operational. Debtors must submit their records to said commission to calculate what they must pay.
How is this credit paid?
The payment of the credit with the guarantee of the State is made according to the debtor’s income and the collection cannot exceed 10% of the debtor’s monthly income. Those who do not have a job will not pay until they find a job.
What is the CORFO credit?
A line of financing that the Corporation for the Promotion of Production ( Corfo ) opened in banks to grant loans to Chilean students and resident foreigners who are pursuing undergraduate or graduate studies.
The banks that process this loan are BBVA , BCI , Santander , Del Desarrollo , Corpbanca , BancoEstado , Banco Fallabela , Banco Ripley and Coopeuch .
What requirements must be met to request a CORFO loan?
• Be a student at the universities, professional institutes and technical training centers that the Ministry of Education defined as eligible for this line.
- Belonging to a family whose gross monthly income does not exceed 120 UF.
- Present an endorsement.
- Comply with other requirements established by each bank in particular.
How much is the amount granted by the CORFO credit?
An annual maximum of 150 UF for a term of up to 15 years. The banks determine in each case, in agreement with the client, the total terms and an eventual capital grace period.
The purpose is for the student to pay small fees while studying (mainly interest), and larger fees (principal and interest) when they have graduated. There is also a payment method based on equal installments throughout the term of the loan.
What Laws Address College Credit?
- Law No. 19,287, of February 4, 1994, which creates the Solidarity Fund for University Credit, which replaced the old “tax credit”.
- Law No. 19,848, of December 27, 2002, which reschedules credit debts.
- Law No. 20,027, which establishes rules for the financing of higher education studies and creates credit with a state guarantee.
What are savings plans to finance higher education?
Plans created by financial institutions to receive voluntary savings to finance the payment of tuition and tuition for higher education studies.
What benefits do you get from these savings?
You can opt for a tax subsidy equivalent to 300% of the interest obtained by the savings, if the following requirements are met:
- The savings plan is more than 2 years old.
- The savings are no less than 60 UF for a university degree or 30 for a technical degree.
- That the saving has already been finished.
