Nasser Social Bank Adds University Fees to Education Financing Scheme With 15% Return on Unused Funds
Egypt’s Nasser Social Bank has redesigned its education financing product to include university tuition for the first time, while introducing an unusual structure that combines borrowing with savings to help families manage education costs over several years.
Under the revised scheme, customers can obtain financing covering an entire educational stage rather than borrowing separately for each academic year. The bank pays tuition in annual installments based on actual fees, while the portion allocated to future years is placed in a savings vehicle yielding 15% annually until it is needed.
The structure effectively allows families to secure financing for future education costs in advance while generating a return on funds that have not yet been used.
University tuition added for the first time
One of the biggest changes is the inclusion of university fees, which were not covered under the product’s previous terms.
The expansion broadens the financing program beyond school expenses and gives parents a mechanism to spread university education costs rather than meeting large tuition payments entirely from current income.
The product is available to parents of school and university students across several employment categories, including government and public-sector employees, pensioners and pension beneficiaries, employees of private-sector organizations registered with the bank, bank employees and customers holding savings products with Nasser Social Bank.
Financing and saving in the same product
The 15% savings component distinguishes the revised scheme from a conventional education loan.
Instead of disbursing the entire financing amount immediately, the bank releases only the tuition required for the current academic year. The remaining amount earmarked for subsequent years is invested until those payments become due.
According to Maya Morsy, Minister of Social Solidarity and Chairperson of Nasser Social Bank, the mechanism is intended to allow customers to generate a return on money allocated for future tuition rather than leaving the funds unused.
This could also provide some protection against increases in education costs over the financing period, although the extent of that protection will depend on how quickly tuition fees rise relative to the return generated.
Lower financing cost and no administrative fees
The bank has also adjusted the cost of the product.
Walid El-Nahhas, Vice Chairman of Nasser Social Bank, said the financing carries a return rate 0.5 percentage points below the rate applied to the bank’s cash financing products.
Customers are also exempt from administrative fees, reducing the upfront cost of obtaining the financing.
The changes come ahead of the 2026/2027 academic year, when rising school and university expenses are putting additional pressure on household budgets.
Nasser Social Bank had already been offering education financing in August, but the latest revision changes the structure substantially by extending it to university tuition and linking future-year financing to a savings product.
That makes the new model less like a conventional one-year education loan and more like a multi-year financial plan for education, with borrowing, annual tuition payments and savings combined under one product.