Renegotiation of FIES (Student Financing Fund) could benefit more than 1 million students.

Brazil Agency - The provisional measure (MP) that establishes rules for renegotiating debts from the Student Financing Fund (Fies) could benefit just over 1 million students, representing contracts worth R$ 35 billion. These figures are from the Ministry of Education (MEC) and take into account a total of 2,6 million active Fies contracts, opened up to 2017, with an outstanding balance of R$ 82,6 billion. Of this total, 48,8% (1,07 million) are in arrears for more than 360 days. The text that facilitates the payment of arrears was issued on the last day of 2021 and still needs a regulatory decree. 

Among the main proposals are the installment of debts in up to 150 months (12 and a half years), with a 100% reduction in late payment charges and the granting of a 12% discount on the outstanding balance for students who pay off the debt in full. The discount will be 92% of the consolidated debt in the case of students who are in the Single Registry for Social Programs (CadÚnico) or were beneficiaries of emergency aid. For other students, the discount will be 86,5%. During the live broadcast this Thursday (6), President Jair Bolsonaro addressed the topic.  

"We decided to reach an agreement with the Ministry of Economy and the Ministry of Education to completely waive the interest and, when it comes to the principal [of the debt], to offer a 92% discount. This will affect around 550 students who are registered in the Unified Registry or receiving Emergency Aid. So, they will only have to pay, after deducting interest, 8% of the principal, and this can even be paid in installments. A great opportunity for people to free themselves from Banco do Brasil and Caixa Econômica. Free in terms of debt. And another 520 students will also have debts, but the discount will be a little smaller, instead of 92%, it will be 86,5%," he explained.   

According to figures from the Ministry of Education, students with FIES contracts who are registered in the CadÚnico (Single Registry for Social Programs) or who received Emergency Aid total 548 contracts. The remaining students in default account for another 524,7 financing contracts.  

Fies is a federal government program designed to provide financing to students regularly enrolled in non-free higher education courses that have received a positive evaluation in the processes conducted by the Ministry of Education (MEC). Applications for Fies are accepted twice a year, before the start of classes each semester. 

Debt renegotiation under the program must be carried out through the service channels that will be made available by the program's financial agents. Although it has been in effect since last week, the Provisional Measure still needs to be definitively approved by the National Congress within 120 days after the end of the legislative recess, which ends in February.