Five tips on student loans

Student loans are loans intended solely for students to enable them to study full-time.  These loans come with special benefits such as a free state guarantee and student loan compensation. The interest rate is usually lower than for other loans.

The state guarantee means that the government guarantees your student loan. Therefore the bank does not need any other collateral from you to guarantee that you will repay the loan.  

Student loan compensation for university students means that Kela pays back part of your student loan if you complete your degree within the set time.

Did you know that you can get a student loan from Nordea with no opening fee?

See our benefits for young customers and students

A student loan can be a good option if your finances are stretched or if it’s not possible for you to combine work and studies.

1. Calculate your monthly expenses: living, food and other costs.
2. Compare your expenses and income: financial aid and any savings and salary.    

You can use the budgeting tools in Nordea Mobile.

The amount of your student loan depends on how old you are and where you study. The loan guarantee covers between 400–850 euros per month, or up to 1,000 euros per month if you study abroad. You can see the amount of your student loan from the student financial aid decision you received from Kela.

Our example calculations will help you understand what studying for one, three or five academic years with a student loan can cost.

Keep in mind that your student loan is not free money, but you have to repay it.

Compare student loan amounts

1. You should apply for student financial aid from Kela as soon as you have been admitted to study.
2. You will receive a decision on a loan guarantee together with your student aid decision. 
3. Apply for a student loan from us. We have received information about the state guarantee for your student loan.
4. You’ll get the loan decision in 1 to 3 days. During peak periods it may take us longer.

A student loan is granted for one academic year at a time. At the beginning of each new academic year, you need to apply for a top-up to your existing student loan. 

Did you know that you need to apply for a new loan or a top-up by 31 July every year? 

Read more about applying for a student loan

Drawing down a student loan means that the loan will be disbursed to your account. There are two drawdown options:

1. Automatic drawdowns – with this option your loan instalments are disbursed automatically to your account on the dates specified by Kela.
2. Partial drawdowns – with this option you need to submit a student loan application to us every time you wish to have a loan instalment disbursed to your account.

If you are an upper secondary school student, you can draw down a student loan in four instalments. 

Tip: If you draw down your loan in one go, consider transferring part of it to another account from which you can transfer money to your current account as needed.

Read more about how to draw down a student loan

As long as you receive student financial aid, you don’t need to pay interest or repay your loan. We will add the interest on your student loan to the loan principal during the financial aid period and for one additional term after you stop receiving student financial aid. 

After about a year from the end of your student financial aid, you will need to start paying interest twice a year. You will start amortising your student loan principal about 1.5 to 2 years after you stop receiving student financial aid. 

You can add flexibility to your loan repayments by applying for a payment holiday or adjusting your instalment and due date. If you’re struggling with your loan repayments, you should contact us as soon as possible.

Did you know: If your income is small after graduation, you should apply for interest assistance from Kela for paying the interest on your student loan.  

Read more about the repayment of student loans