This scheme is administered by IST on behalf of the Department of Education.

Eligibility for Loan Interest Subsidy

A loan interest subsidy is awarded in accordance with Part 5 of the Education Act 1994 to offset interest paid on a loan taken out for the purpose of eligible capital expenditure. This is expenditure incurred for the educational or residential purposes of the school’s students and can relate to:

  • The acquisition of land;
  • The erection, alteration and extension of buildings;
  •  The installation of essential services.

Schools negotiating non-conventional loans, such as ‘lines of credit’  may be eligible if the borrowings are for approved purposes.

A loan interest subsidy is only available for that part of a loan which is used for eligible capital expenditure.  Accordingly, it is possible to register the eligible portion of a loan for an interest subsidy payment.

Loans must be scheduled to be repaid within a period of no more than 20 years, this being the maximum period for allocating an interest subsidy for any loan.

Interest only loans are not eligible for a subsidy.

Only loans provided on a commercial, arms-length basis are eligible for a subsidy. Contact us for more information on this scheme.

Please be advised that due to the phasing out of this program, no new loans will be registered from 2018 onwards.

Forms for Download

General Guidelines 2017-2018

Loan Interest Accountability Cert IST Form 4 2017-20178doc