Frequently asked questions about student loan amount and interest rate

What will affect the total student loan amount?

The size of your student loan depends on where you study and how old you are. The maximum student loan amount ranges between 300 and 800 euros per study month, depending on the student financial aid decision made by Kela.

• For students studying at a Finnish university, the maximum student loan amount is 650 euros per month.
• This is the loan amount paid to all students in Finland who are 18 or older or who are eligible for the adult education allowance.
• The student loan is also available to students who are under 18 and who study at another institution than university, but their maximum amount is 300 euros per month.
• For students studying abroad, the maximum amount is 800 euros per month, regardless of age.

If you’re uncertain about how you qualify, you can check your maximum student financial aid with Kela’s calculator (in Finnish).

Should I take out a student loan now that interest rates are rising?

Student loans are one way for the government to support your studies. It gives you peace of mind to focus on your studies and complete your degree in the target time. Read more on Kela’s website.

What does capitalisation of student loan interest mean?

Capitalisation of interest means that the interest on your student loan is added to your outstanding loan principal. This takes place twice a year, on 15 June and 15 December. In practice, this means that the interest accrued over six months is added to your loan principal each time. Interest is capitalised for the last time in the academic term following the last month in which you receive student financial aid.

Interest is capitalised for as long as Kela pays you student financial aid. Once you no longer receive student financial aid, these interest payments will be charged twice a year, on 15 June and 15 December, which means you pay interest for six months in one go. These payments will be repeated 2–3 times before you start repaying your student loan.

Once you start repaying your student loan, the interest payments will be included in your monthly loan repayments.  Your monthly loan repayment will then comprise the interest, margin and instalment.

Read more about the repayment of student loans.

Read more about interest subsidy on Kela’s website. 

What is the reference rate and margin of a student loan?

The reference rate of a student loan is the 12-month Euribor. The 12-month Euribor is a variable rate, which means that the interest rate of your student loan is reviewed once a year (every 12 months). On the review date, the interest rate of your loan will be reset to match the current interest rate level and it will stay the same for the next 12 months. Currently, the Euribor rates are high, but borrowers may benefit from a variable-rate loan later when interest rates start to fall.

The bank’s margin of about 0.50% is also added to the student loan.

When will I start to pay interest on my student loan?

You will start to pay interest on your student loan about 6 months after your months of student financial aid have run out or once you have graduated. These interest payments will be charged twice a year, on 15 June and 15 December, which means you pay interest for six months in one go. These payments will be repeated 2–3 times before you start repaying your student loan. Once you start repaying your student loan, the interest payments will be included in your monthly loan repayments. Your monthly loan repayment will then comprise the interest, margin and instalment. 

We will agree with you on the repayment schedule of your student loan about 1.5–2 years after your graduation.