FAQs About Student Loans

What type of loans are available and who is eligible?

AUBG has entered into agreements with the commercial banks to provide partial funding to cover the cost of attendance. All full-time, degree-seeking students in good academic standing, who are not recipients of full scholarships are eligible for these loans.

Please check our website at www.aubg.edu/loans for the most updated information regarding available student loans and procedures for application.

What may the loan pay for?

The loan from Tokuda Bank may cover tuition, student activities fee, room, and meal plan deposit. 

The governmentally-guaranteed loans cover only the full amount of the tuition.
The loan from First Investment Bank covers 75% of AUBG tuition, room and student activity fee.
The loan from Unicredit Bulbank covers part of the tuition fee.

Can I borrow more than I need and get some cash to pay for incidentals?

No, your loan can only cover those educational expenses for which you are normally billed by AUBG. The money is paid directly to AUBG on your behalf.

How much can I borrow?

Tokuda Bank offers up to 5,000 USD per academic year or up to 20,000 USD for four years of study

First Investment Bank offers student loans up to 10,000 EUR for the entire duration of AUBG studies (it covers 75% of the tuition for each semester and cannot exceed the amount of 10 000 EUR for the four years of study).

Unicredit Bulbank offers to all AUBG students a student loan up to 800 Euros per semester or 6,400 Euros per the whole period of attendance to cover part of the tuition costs. 

Raiffeisenbank, DSK Bank , Allianz Bank Bulgaria, Eurobank Bulgaria, First Investment Bank, Bulgarian American Credit Bank, Invest Bank, and United Bulgarian Bank provide governmentally-guaranteed loans with fixed interest up to 7% per year for Bulgarian and EU students in all accredited Universities in Bulgaria up to the full amount of tuition.

Do I have to borrow the same amount each semester?

No. You can let the bank know if the amount you need to borrow is different. You will have to submit a new application/certificate.

Do I have to make a new application each semester?

Yes, you need to apply each semester.

When do I need to start repaying my loans?

This will be specified in the conditions of your loan contract. Please check your repayment schedule.

Loans for Bulgarian Citizens from Tokuda Bank - For every year (up to five) the student works in Bulgaria during the repayment period, the America for Bulgaria Foundation will cover 20% of the loan principal amount. If the student spends five of the first ten years after graduation in Bulgaria, they will only need to repay the interest accrued.

In the case of the loans for EU citizens - one year after graduation from AUBG (students don't pay interest while studying).
For loans from Unicredit Bulbank - students pay only interest while studying at AUBG and the full principal amount of the loan plus interest must be fully repaid by the time the student is expected to graduate from AUBG. 
Deferrals are not granted.
For loans from First Investment Bank - repayment usually start one month after loan disbursement. In some exceptional cases the bank can grant grace period of up to one year.

What happens if I go to graduate school or into the military?

You must still begin making payments on your loan after graduating from AUBG in accordance with your loan agreement.

How long do I have to pay the loan?

You will work out the specific terms and conditions of paying your loan back with the bank.

Can I change banks once I sign up with one bank?

Yes, you can change the bank that you have initially selected.

How do I select a lender?

You will have to go over the offers of the banks and select the one you find most suitable for your needs.

As an US citizen, am I eligible for US Student Loan programs?

Yes, AUBG has recently been certified to participate in the US Federal Direct Loans Program. We are currently working on implementing the program on campus. There are certain logistical steps that need to be completed in order for the program to become fully operational. You may also find that a home equity loan or other type of loan from a bank in your hometown will provide some of the support that you need. You are eligible for AUBG financial aid as well, on the same terms as other first-year students. US students who come for one semester or a year of study abroad will want to work with their home institutions to be sure their financial aid can be used. Please check our webpage regularly for most up-to-date information.

If I have served in the US military am I eligible for the G.I. loan program?

AUBG has applied for recognition and is listed among the institutions at which you can use your benefits.

I am over 25 and financially independent of my parents. Do they still have to countersign my loan?

A guarantor is only required for Bulgarian students who apply for loan from First Investment Bank, and Unicredit Bulbank. In the case of the governmentally-guaranteed loans, the state assumes the role of guarantor for Bulgarian and EU students. International students don't need additional guarantees on their student loans.

What does it cost to get a loan?

Contact the AUBG Student Loan Coordinators for the most updated information.

May these fees be deducted from the principal of the loan?

No, you must pay these fees directly.

What is the interest rate?
  • The annual interest rate for Tokuda Bank is 6%.
  • The annual interest rate for First Investment Bank is 7%.
  • The annual interest rate for Unicredit Bulbank is 5.99%.
  • The annual interest rate for Raiffeisenbank, DSK Bank , Allianz Bank Bulgaria, Eurobank Bulgaria, First Investment Bank, Bulgarian American Credit Bank, Invest Bank, and United Bulgarian Bank who provide government-guaranteed loans is up to 7%.
What happens if I miss an interest payment?

You will not be able to receive another student loan tranche. You will also not be able to get official transcripts or other documents from AUBG if you have outstanding amounts due.

What happens to my loan if I take a leave of absence?

That depends on the purpose of the leave. If you process an approved leave of absence form in order to participate in an AUBG study abroad program, for example, the conditions of the loan are the same as if you have continued to be enrolled at AUBG. You will need to make the scheduled interest payments in your absence. If you leave without university sanction, you must begin making payments on the loan principal within one month after your departure.

What happens if I leave AUBG?

If you permanently withdraw from AUBG - formally or informally - or are dismissed for academic or disciplinary reasons, you must begin payments on the loan principal according to the loan repayment schedule agreed with the bank.

What if it takes me longer than eight semesters to graduate?

Your loan will only cover eight semesters of study.

What happens if I don't pay the loan?

All legal remedies shall be pursued  to collect the amount owed plus interest, legal fees, and additional penalties from you and your guarantors

I would prefer to borrow two loans from the two banks at the same time. Can I?

No, you cannot borrow the loans from the two banks at the same time.

What is the average amount of student debt upon graduation of class of 2014-2015?

The average amount of student debt upon graduation for class of 2014-2015 (undergraduate program) is $14,674

The average amount of student debt upon graduation for class of 2014-2015 (graduate program) is $10, 970

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