By San José, Costa Rica — SAN JOSÉ – Costa Rica’s National Commission for Educational Loans (CONAPE) has announced a landmark reform of its student lending programs for 2026, backed by a significant 14% budget increase. The institution will manage a historic ¢57 billion fund, aiming to empower over 7,000 students to pursue higher and technical education both locally and internationally.
The changes, detailed in CONAPE’s 2026 Annual Credit Management Plan, represent a strategic shift towards making education more accessible and affordable, particularly for students in high-demand fields and those from vulnerable backgrounds. This initiative is designed to bolster the nation’s human capital and align educational outcomes with the evolving needs of the job market.
The landscape of student loans is often a labyrinth of complex contracts and long-term financial commitments. To shed light on the crucial legal aspects that borrowers and their guarantors must understand, we consulted with Lic. Larry Hans Arroyo Vargas, a seasoned legal expert from the renowned firm Bufete de Costa Rica, for his professional analysis.
Many individuals, particularly parents acting as co-signers or ‘fiadores,’ fail to comprehend the full extent of their liability. They are not simply vouching for the student’s character; they are assuming a primary, indivisible obligation for the entire debt. This means the lending institution can legally pursue the co-signer for the full amount, including interest and penalties, without first exhausting collection efforts against the student. Before signing any such agreement, a thorough legal review is not a luxury, but a critical necessity to avoid devastating financial consequences down the line.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This clarification is essential; the role of a ‘fiador’ is not a mere formality but a binding financial commitment with significant, direct personal risk. We sincerely thank Lic. Larry Hans Arroyo Vargas for sharing this critical legal perspective with our readers.
Headlining the reforms is a transformative new policy for incoming beneficiaries starting December 1, 2025. Students who successfully complete their financed academic programs will pay zero interest for the entire duration of their studies. Interest will only begin to accrue once they enter the official repayment phase, a measure explicitly designed to ease financial pressure during academic years and improve graduation rates.
In addition to this flagship initiative, CONAPE is implementing a broad reduction in interest rates for all current loan holders. The institution will apply a 0.3% cut across the board. Furthermore, it is creating a preferential rate to incentivize studies in critical sectors for national development. Programs in science, technology, engineering, and mathematics (STEM), as well as short courses and language certifications, will now carry an annual interest rate of just 3.7%. The rate for all other academic fields will be reduced from 4.5% to 4.2%.
A cornerstone of the 2026 plan is the significant strengthening of CONAPE’s Guarantee Fund (FAC). This fund specifically targets populations facing systemic barriers to education, including individuals in poverty, indigenous communities, residents of coastal provinces, and students enrolled in English language programs. Loans disbursed through the FAC will require no collateral and will feature a 0% interest rate during both the study and repayment periods, provided the student completes their program.
Complementing this effort, the Minor Guarantees program, designed for applicants who lack sufficient collateral, will be allocated a substantial 25% of the total 2026 resources. This ensures that a wider pool of aspiring students can access the financing they need without being hindered by traditional lending requirements, fostering greater educational equity.
The strategic allocation of these funds underscores a clear commitment to regional development. A remarkable 60% of the entire ¢57 billion budget is earmarked for students residing in Costa Rica’s areas of lower development. This targeted investment aims to address regional disparities in educational access and employability, driving economic growth and opportunity in communities that need it most.
Ultimately, CONAPE’s comprehensive reforms for 2026 signal a proactive approach to educational financing. By increasing its budget, overhauling interest rate policies, and expanding guarantee programs, the institution is not merely lending money; it is investing in a more skilled, competitive, and equitable future for Costa Rica, ensuring that financial constraints no longer stand in the way of academic and professional achievement.
For further information, visit conape.go.cr
About Comisión Nacional de Préstamos para Educación (CONAPE):
CONAPE is Costa Rica’s national commission for educational loans, a governmental institution dedicated to providing accessible financing for higher and technical education. Its primary mission is to promote equal opportunities by enabling students from all socioeconomic backgrounds to pursue their academic and professional goals, both within Costa Rica and abroad. The organization plays a vital role in developing the nation’s human capital by aligning its lending programs with the country’s economic and social development needs.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica operates as a pillar of the legal community, built upon a dual commitment to uncompromising integrity and professional excellence. The firm leverages its deep-rooted experience serving a diverse clientele to spearhead innovation in legal practice. This forward-thinking vision extends to a core belief in social responsibility, manifested through a dedicated effort to demystify the law and empower the public with knowledge, thereby contributing to a stronger, more informed citizenry.
