Minority report

Banks competing in the student-loan market are preparing to battle for customers as the student population explodes.

"Offering low student-loan rates is a cheap way to attract new customers since a large proportion of the customers stay with the bank after completing their studies," said Łukasz Janda, a banking-products specialist at financial-advisory firm Expander.

In the nine years since the launch of student loans, more than 287,700 students have taken up the offer. These students are expected to become well-qualified, high-income professionals and good customers for banks in the future.

The student loan is the cheapest loan available in Poland. The interest rate is calculated at half the rediscount rate of the National Bank of Poland (NBP), which currently puts it at 2.5 percent. The loan is only available to students under 26 years of age or those engaged in doctoral studies.

The low rate, which is less than half the price of an average mortgage, is achieved through heavy government subsidies. The government sees it as an efficient way of attracting people to higher education, but the banks see it as an effective way to secure new customers.

The loans are unrelated to other direct financial help available to students.

Not every bank is allowed to offer the loans - only those who have signed an agreement with the Bank Gospodarstwa Krajowego qualify.

Seven banks currently offer the loans: Bank Gospodarki Żywnościowej, Bank Pekao, Bank Polskiej Spółdzielczości, Bank Zachodni WBK, Gospodarczy Bank Wielkopolski, Kredyt Bank and PKO Bank Polski.