Cuts in the Student Financial Aid

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The Government has during its frame discussions made decisions on cuts in the Student Financial Aid. Here you can read the ministry’s estimated schedule on the cuts.

The Government decided on long term savings on 122 million euro from Student Financial Aid. In practice that means that the study grant for all students will be cut to 250,28 euro a month starting August 1, 2017, which is the same as students in upper secondary education (vocational or high school). When combined with a student loan a student can raise a total amount of 1 101,88 euro per month for studies in Finland or 1 260,28 euro per month for studies abroad. Parents’ income will no longer affect students in upper secondary education not living with their parents.

The amount of months a student is able to raise student financial aid is cut from 64 to 54 months in total, which includes both bachelors and master’s degrees. The amount of credits achieved a month will remain at 5 credits.

The Government guarantee for student loan is raised to 650,00 euro per month for studies in Finland and 800,00 euro for studies abroad. The subsidization of student loans will remain on the same level as before.

Maximum income to receive a study grant will be bound to the Index of wage and salary earnings, the index cannot have a negative effect on the maximum income, in other words it can never drop. The interest on study grants being repaid will reduce to 7,5 percent. These changes will take affect either January 1, 2017 or January 1, 2018 for all students in higher education.

The Government is preparing a suggestion to move students into the general housing subsidy system for the budgetary discussions in the fall. Students living abroad will remain under the students’ housing subsidy system. The schedule for these amendments is still open.