The educational loan is a low-cost loan with fair interest rates to support further education and training. Thus, consumers can use the loan to supplement the state subsidy and receive the loan even if their credit rating is not optimal.
The student loan (also known as an Education loan) usually has flexible terms. It is used to finance training courses or further education for a new professional career. The loan can be used to finance school or university fees, training materials or distance learning (for example. Open university courses).
Uses of an Educational Loan
- Further training in the existing occupation (language courses, software courses, computer courses)
Costs for education and training
The costs of initial and continuing education and training can vary considerably depending on the institution, location, subject and length of study. On average, students have to reckon with costs of between CHF 20,000 and CHF 30,000. In addition to the above-mentioned cost factors, these include rent, insurance, living expenses, admission or examination fees, infrastructure such as PCs and Internet access, tuition fees, costs for excursions or special courses, travel to the place of study and study materials such as books and office supplies or even instruments, software, etc.
Tax aspects
Training measures are supported by the state in the form of tax savings. The costs of further training can be deducted from income, thus reducing the tax burden. Training costs are not subsidised, and it is often difficult to distinguish between training costs and continuing training costs. It should be checked beforehand whether the further training is necessary for the professional opportunities. Examples of deductible continuing training that can be recognised are foreign language courses that are needed for professional purposes or computer and software courses in the office sector. In case of doubt, the costs of the continuing education measures should be stated in the tax assessment. There is still the chance that the completed training will be offset against tax. Training costs for a higher, new position or the change to a completely new profession are often not tax deductible.
