In 2014, the total outstanding debt for student loans at the Mường Chà Transaction Office of the Vietnam Bank for Social Policies (VBSP) reached nearly VND 4 billion with around 280 borrowing students. However, by the end of 2025, the program recorded no new loans. All old loans were fully recovered, bringing both the total outstanding debt and the number of borrowing clients down to zero. This marks the first time after nearly two decades of implementation that the student credit program at the Mường Chà VBSP Transaction Office has no active borrowers.

The absence of outstanding debt does not stem from the bank tightening loan conditions or facing a shortage of capital, but rather from the reality of declining borrowing demands among local residents.

Vùi Văn Nghĩa, Director of the Mường Chà VBSP Transaction Office, stated that in recent years, the number of pupils and students belonging to poor or near-poor households or those in difficult circumstances who qualify for loans has decreased significantly compared to before. The economic life of local residents has step-by-step improved, allowing many families to proactively finance their children’s education without needing loans. While this stands as a positive signal reflecting the efficiency of poverty reduction work, it concurrently makes the student credit program increasingly difficult to disburse.

This difficulty in disbursing preferential credit funds for students is occurring across many other localities throughout the province. By June 30, 2026, the total outstanding debt of the student loan program across the entire province reached nearly VND 2.992 billion with 52 active borrowing clients, while the loan volume in the first six months of the year only hit VND 120 million for 5 borrowing clients.

Currently, three VBSP Transaction Offices in Mường Chà, Mường Lay, and Mường Nhé all report zero outstanding debt for the student loan program under Decision No.157/2007/QĐ-TTg of the Prime Minister. While many other policy credit programs always face massive disbursement demands, the student loan program falls into a situation where capital is available but hard to disburse.

The primary cause rests on the fact that poverty and near-poverty rates decrease year by year, alongside the synchronous deployment of multiple social welfare policies that have significantly alleviated the pressure of educational costs for families. Policies on tuition fee exemption and reduction, study cost support, scholarships, social allowances, and various other support programs have given pupils and students more conditions to attend school without relying on loans.

Furthermore, the career choices of young people have seen many changes. Upon graduating from high school, quite a few students opt for vocational training, join the labor market, or work at enterprises and industrial parks instead of pursuing university degrees. Beside that, the loan interest rate for students remains relatively high, which significantly lowers the demand for educational loans.

Mào Văn Tuấn, Deputy Director of the Mường Nhé VBSP Transaction Office, shared that the unit regularly coordinates with local authorities and mass organizations to propagate the student credit program. However, the current reality shows that some student families have borrowing needs but do not fall under the beneficiary categories. According to regulations in Decision No.157, loan recipients must belong to families in difficult circumstances such as poor or near-poor households, families facing financial distress due to accidents, natural disasters, illnesses, or epidemics, and orphaned students. This leaves many households outside these categories facing financial hardships but unable to meet the conditions to access the loan program.

According to the assessment of the Điện Biên provincial VBSP Branch, the student credit initiative is currently being deployed via two programs, including loans for pupils and students in difficult circumstances under Decision No.157/2007/QĐ-TTg and loans for pupils, Master’s students, and PhD candidates pursuing fields in science, technology, engineering, and mathematics (STEM) under Decision No.29/2025/QĐ-TTg of the Prime Minister. Nonetheless, the implementation process encounters various obstacles.

The number of eligible pupils and students in the province is small, and the number of postgraduates and students pursuing STEM fields remains limited. Meanwhile, the loan limit for students in difficult circumstances currently stands at VND 4 million per month per student, which does not truly satisfy actual tuition and living costs in the context of rising prices. In several remote and isolated areas, propaganda work is not yet thoroughly effective, leaving quite a few residents lacking complete information regarding the target groups, conditions, and loan procedures, which leads to a lack of proactivity in accessing the policy.

While the sharp drop in loan demand partly reflects the positive results of poverty reduction, socio-economic development, and the efficiency of other welfare policies, maintaining preferential credit policies remains crucial. In the context of rising educational costs and a growing demand for high-quality human resources, studying and adjusting the loan limits to fit reality will contribute to ensuring that all pupils and students in difficult circumstances secure opportunities to learn, develop, and contribute to local growth.