Brazilian government creates savings programme for high school students

Brazil's federal government has created a scholarship and savings programme for low-income high school students to encourage young people to stay in education and complete their studies. A special fund will be created for this purpose, to which the federal government will contribute up to 20 billion reais (US$4.1 billion). This is reported by Brasil 247, partner of TV BRICS.

"Reducing school dropouts and encouraging young people to complete secondary education are considered key factors to guarantee young people access to better training and employment conditions," the Presidency explained. According to the statement, the dropout rate from secondary schools is as high as 16 per cent. Data shows that the first year of schooling has the highest number of dropouts and cases of failure.

Interim Measure (MP) No. 1,198, dated 27 November 2023, was published on Tuesday, 28 November. It is already in effect, but must undergo congressional approval within 120 days.

The joint act of the Ministries of Education and Finance will determine the amounts, payment methods, operational criteria and how the savings will be used to incentivise continuous learning and school completion. The amounts will be credited to an account opened in the student's name, which can be a digital social savings account Caixa Econômica Federal.

Low-income young people who attend public schools regularly and belong to families registered in the Federal Government's Single Registry of Social Programmes are eligible. Priority is given to those with a monthly per capita income of R$218 or less.

Savings are not taken into account when calculating family income for the granting or receipt of other benefits.

The interim measure also includes coordination with the federal district, municipalities and with the states, which will provide the information necessary to implement the programme so that students enrolled in their respective school networks can access the savings.

If students fail to meet the conditions or opt out of the programme, the corresponding amounts deposited in the account will be returned to the fund.

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