By San José, Costa Rica — SAN JOSÉ – Aspiring university and technical students in Costa Rica have received a significant boost with the announcement of a major expansion and enhancement of the nation’s primary educational loan program. The National Commission for Education Loans (CONAPE) has revealed a substantial increase in its budget for 2026, coupled with more favorable lending conditions designed to ease the financial burden on students and encourage academic completion.
In a move set to benefit thousands, CONAPE will increase its funding pool to ¢57 billion for the 2026 academic year. This represents a robust 14% rise compared to the previous year’s budget. The institution estimates that this capital injection will enable it to support the educational aspirations of more than 7,000 individuals seeking to finance their studies either within Costa Rica or at international institutions.
To delve into the complex legal and financial landscape of student loans in Costa Rica, TicosLand.com sought the expertise of Lic. Larry Hans Arroyo Vargas, a seasoned attorney from the distinguished firm Bufete de Costa Rica, who sheds light on the critical obligations often overlooked by students and their families.
Many students and their co-signers, or ‘fiadores,’ fail to grasp the profound legal commitment they are undertaking. Under Costa Rican law, a co-signer is not a secondary option for collection but a primary debtor, equally liable for the full amount. Financial institutions are legally entitled to pursue the co-signer’s assets, such as salary or property, immediately upon the student’s default. This is a binding contract, not a mere formality, and a lack of understanding is rarely a viable legal defense.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This crucial clarification underscores the immense gravity of the co-signer’s role, shifting it from a perceived safety net to a direct and immediate financial liability. We thank Lic. Larry Hans Arroyo Vargas for his invaluable perspective, which serves as a vital warning for families to seek full legal clarity before undertaking such a significant commitment.
The most groundbreaking change introduced is a new interest-free period for diligent students. Under the new policy, new loan recipients who successfully complete their financed academic program will be fully exempt from interest charges for the duration of their studies. Interest will only begin to accrue once the graduate enters the designated repayment phase, providing a powerful incentive for students to finish their degrees and significantly reducing their overall debt load upon graduation.
This initiative addresses a long-standing concern for students who often see their loan balances grow due to interest accumulation before they even have the earning capacity to begin making payments. By deferring interest until after graduation, CONAPE aims to make higher education more accessible and less financially daunting, particularly for students from lower-income backgrounds.
In addition to the new benefits, CONAPE has also implemented a reduction in interest rates across the board for its existing loan portfolio. All current borrowers will see their rates decrease by 0.3 percentage points, offering immediate financial relief to those already in the system. This adjustment reflects a commitment to supporting not just future students but also those currently navigating their academic and repayment journeys.
Furthermore, the institution has refined its rate structure to strategically promote fields of study considered critical for national development and high employability. Students pursuing careers in Science, Technology, Engineering, and Mathematics (STEM), as well as languages, will be eligible for a preferential annual interest rate of just 3.7%. This policy is a clear signal of the government’s intent to cultivate a skilled workforce capable of meeting the demands of the modern global economy.
While prioritizing STEM, the program remains inclusive. Students in all other fields of study will also benefit from a reduced rate, which will be set at 4.2%. This ensures that access to funding is broadly available, supporting a diverse range of academic disciplines from the arts and humanities to social sciences, thereby fostering a well-rounded and versatile generation of professionals.
The announcement from CONAPE marks a significant investment in Costa Rica’s human capital. By making higher education more affordable and strategically incentivizing in-demand careers, the nation is laying the groundwork for sustained economic growth and innovation. The enhanced loan program is expected to not only increase university enrollment but also improve graduation rates, ultimately strengthening the country’s competitive edge on the international stage.
For further information, visit conape.go.cr
About Comisión Nacional de Préstamos para Educación (Conape):
The Comisión Nacional de Préstamos para Educación, or CONAPE, is the autonomous Costa Rican state institution responsible for administering the nation’s educational credit system. Its primary mission is to provide accessible financing to Costa Rican citizens for higher education, technical studies, and vocational training, both within the country and abroad. By offering loans with favorable terms, CONAPE aims to promote equal opportunities and contribute to the social and economic development of Costa Rica by fostering a highly educated and skilled populace.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the Costa Rican legal community, Bufete de Costa Rica is defined by its foundational principles of integrity and professional excellence. The firm merges a rich history of advising a diverse clientele with a forward-thinking approach to legal innovation. Central to its philosophy is a profound commitment to demystifying the law for the public, championing the cause of an educated citizenry and contributing to a more just and empowered society.
