Sunday August 14, 2022

Kela increases study grants by 5.7% for upcoming academic year

Published : 12 Jul 2022, 01:03

Updated : 12 Jul 2022, 01:04

  DF Report

DF File Photo.

The national social insurance institution- Kela has decided to increase the study grants by 5.7% for the upcoming academic year, said an official press release on Monday.

Kela has reviewed the student loans for students who continue their studies for the academic year 2022-2023.

Decisions on student loan guarantees for the next academic year have been sent to 110,350 students. The first loan disbursement can be taken out starting from the beginning of August.

Kela has sent decisions regarding a student loan guarantee for the upcoming academic year to 109,150 financial aid recipients and to 1,200 recipients of adult education allowance.

Students who have an application for financial aid, notice of a change in circumstances or other matter which is pending will be sent a decision on their loan guarantee when the other matter is decided. This applies to 680 students.

A year ago, 111,800 students received a loan guarantee decision.

Government guarantees for student loans are granted by Kela one academic year at a time and for the maximum amount of student loan credit available under the guarantee.

The typical loan guarantee is EUR 650 per month. A student can receive EUR 2,600 or EUR 3,250 in student loan in the autumn and usually EUR 3,250 in the spring.

The student loan and other forms of financial aid are intended for all the months of study in the academic year.

Kela cannot grant loan guarantees that exceed the maximum amount. However, students may qualify for additional financial aid if their studies are extended into the summer months or otherwise. A larger loan guarantee can also be granted for periods of study abroad.

Students must agree with their bank when and how they will take out a student loan. The decision whether to take out a student loan and how much is up to each student.

Most students take out their student loan in two disbursements per academic year. The first disbursement is available starting from the beginning of August. Any student loan funds not yet released for the academic year 2021-2022 can be taken out before the end of July.

According to Bank of Finland statistics, the average interest rate for student loans taken out in the academic year 2021–2022 was 0.3%. The current general increase in interest rates will also result in higher rates for student loans.