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.