Nearly 750 Maltese students have benefited from €33 million in soft loans over the past six years under a scheme backed by the Malta Development Bank (MDB), aimed at supporting further studies in high-demand sectors such as aviation, economics and medicine.

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The FSMA+ scheme — an upgraded version of the original Financial Support for Students pursuing a Master’s or equivalent (FSMA) programme — facilitates access to low-interest, government-backed loans. It enables students to finance tuition fees, accommodation, living costs and other study-related expenses, both locally and abroad.

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The MDB this week announced an increased financial allocation to the FSMA+ scheme, which is co-financed through the European Social Fund and implemented in partnership with Bank of Valletta. Students are eligible for loans of up to €100,000, with a maximum repayment term of 15 years. Notably, the interest incurred during the moratorium period — which covers the full duration of the course plus an additional year — is entirely subsidised.

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MDB chief executive Alison Micallef described the scheme as crucial to ensuring that today’s students can become tomorrow’s skilled workforce. “There are many ambitious students who simply cannot afford to pursue further studies without support. This scheme creates equal opportunities and helps address skills gaps in sectors vital to Malta’s economic development,” she told TVMnews.

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The programme offers additional financial safeguards by including a first-loss guarantee mechanism, through which the MDB absorbs 80% of the risk on individual loans. This setup incentivises commercial banks to participate and extends the reach of available funding by up to five times the original allocation.

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Originally launched in 2019, the FSMA scheme supported around 250 students with €8 million in funding. The upgraded FSMA+ has since expanded access and appeal, with a broader range of eligible courses and a stronger emphasis on internationally recognised qualifications across MQF Levels 5 to 8.

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Despite national efforts, Malta still lags behind EU peers in tertiary education attainment and continues to record a high rate of early school leavers. By easing the financial burden of further study, the FSMA+ scheme aims to close that gap while nurturing a more specialised, competitive workforce.

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Applications are currently open through the scheme’s intermediary partner, Bank of Valletta.

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