Under the scheme, incoming Master students will not have to meet key costs upfront and can start repayments for their learning and housing two years after graduation.
The University of Luxembourg expects to welcome 300 Master students through the €5 million initiative. It is open to students from any of the 32 other Erasmus+ programme countries and students do not require collateral or third-party guarantees to benefit.
The cost of education is one of the main barriers to studying abroad. This initiative aims to overcome that financial obstacle and make postgraduate study abroad accessible to students from all backgrounds.
Through the guarantee agreement signed with EIF, the Erasmus+ programme shares part of the risk with the university that students will not pay back the university for the costs they have incurred.
Tibor Navracsics, the European Commissioner for Education, Culture, Youth and Sport, said:
"This contract with the University of Luxembourg marks a new chapter for the Erasmus+ Master Loan Scheme. The involvement and commitment of universities is one of the big strengths of Erasmus+ and helps us continuously improve the programme. New initiatives to support student mobility such as the Master Loan scheme open up fresh opportunities to students and universities alike, and I encourage more universities to take advantage of them."
The agreement between the European Investment Fund and the University of Luxembourg represents a new direction for the Erasmus+ Master Loan scheme.
This is first time where a university acts as the financial intermediary. Erasmus+ Master Loans are also available in Spain, France, the United Kingdom and Turkey through more traditional financial intermediaries such as banks.
Public and private bodies (acting on their own or in a network) can act as financial intermediaries as part of the Erasmus+ Master Loan scheme. More information can be found in the European Investment Fund's call for expressions of interest.
Erasmus+ Masters Loans are currently available for:
For more information on the scheme, eligibility and how to apply, visit the Erasmus+ Masters Loans webpage.
Photo: © Université du Luxembourg - David Laurent