More Russians Express Interest in Acquiring Education Through Borrowed Funds, According to Forbes
Article Title: Educational Loans See a Surge in Demand Amidst Rising Costs and Policy Changes
In the summer of 2025, there was a notable increase of 32% in educational loans issued compared to the same period the previous year. This surge can be largely attributed to the commencement of the new academic year, as many students secure loans during the summer months to cover their tuition fees and living expenses.
However, a survey conducted by Banki.ru in 2024 did not indicate a significant interest in loans for education among its users. In fact, 64% of respondents preferred a classic consumer loan, while only 6% considered using a loan for education during the summer.
The cost of an academic year, as requested on Vyberu.ru, ranges from 150,000 rubles to 850,000 rubles per year. Comparatively, the requested amounts for academic years on Vyberu.ru have increased by 15-25% since 2024. Consequently, the volume of funds issued for educational loans grew by 37% from June to August 2025.
The rising costs of education and living expenses are likely contributing factors to the increased demand for educational loans. The average federal student loan debt for public university students is around $31,960, reflecting ongoing increases in educational costs that push students to borrow more.
Additionally, total student loan debt resumed growth in 2024 and reached $1.814 trillion in 2025, suggesting an expanding borrower base or higher borrowing amounts. This resurgence in student loan debt may be due to increased loan interest rates, with federal student loan interest rates for undergraduates rising significantly from 2.75% in 2020-21 to 6.53% in 2024-25.
Other factors influencing the demand for educational loans include delinquency and default pressures, policy changes, and financial aid adjustments. With 11.3% of federal loans delinquent as of mid-2025 and a looming "default cliff," more students may be borrowing to manage or refinance existing debt, adding to loan volume.
The end of expanded debt forgiveness plans after the Supreme Court’s ruling in June 2023 and the implementation of new repayment programs in August 2023 may also influence borrower behavior, possibly increasing loan demand as direct forgiveness became limited.
Broader economic and societal factors, such as increased enrollment from underrepresented groups and expansion in fields like healthcare and education that require costly postsecondary training, are also contributing to the rising demand for educational loans.
In conclusion, the spike in educational loans from June to August 2025 is mainly due to the start of the new academic year combined with rising costs, increased borrowing needs driven by economic pressures, and policy environments that shape borrower behavior around this period. Despite the increased demand, surveys conducted by Banki.ru in 2024 suggested that their users had a preference for classic consumer loans over education loans.
[1] Source: Federal Reserve Bank of New York [2] Source: Department of Education [3] Source: Consumer Financial Protection Bureau [4] Source: White House Press Release [5] Source: National Center for Education Statistics
- In light of the rising costs of education and living expenses, many individuals might find it necessary to seek alternatives for financing their education, such as opting for a loan in the field of finance.
- As the demand for education and self-development continues to grow, students may consider exploring various financial options, including educational loans, to meet their financial needs and cover their expenses.
