See how your student loan amount and interest rate affect your finances

Interest rate on a student loan

The interest rate on a student loan consists of the reference rate and the margin. The reference rate of a student loan is the 12-month Euribor and the bank’s margin is about 0.50%.

While you receive student financial aid, you don’t pay any interest on your student loan. The interest accrued on your student loan during your studies will be capitalised, in other words added to the loan principal. This is done twice a year, in June and December. It means that the amount of your student loan increases by the amount of the interest.

Interest is capitalised for the last time in the academic term following the last month in which you receive student financial aid:

For example, if your student financial aid ended in the fall of 2023, the last time interest was added to your loan was in June 2024.
After this, interest payments are debited to your loan servicing account automatically twice a year. In this example, your first interest payment date would be 15 December 2024. This means that you pay interest for six months in one go.
After about 1.5 to 2 years from the end of your student financial aid, you will have to start paying back your loan principal. From this point on, interest will be included in your loan payments.

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 400 and 1,000 euros per study month, depending on the student financial aid decision you have received.

For students studying at a Finnish university, the maximum student loan amount is 850 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.
Student loans are also available to upper secondary school students who are under 18, but their maximum amount is 400 euros per month.
For students studying abroad, the maximum amount is 1,000 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 calculatorOpens new window.

Repayment of a student loan

We will send you a proposal for a repayment schedule with a repayment period of 15 years. If you’re happy with the repayment schedule, all you need to do is to start repaying your loan according to the plan. You have the option of making changes to your repayment schedule if you want to repay your student loan faster or if you need more time.

You can always contact us to agree on a suitable repayment schedule for you. If you do all your banking with Nordea, we can help you arrange your finances in a way that best suits you.

Compare amounts and interest rates

9 months of student financial aid

27 months of student financial aid

45 months of student financial aid

Indicative annual percentage rate

Compare student loan amounts and interest expenses

The indicative example calculations are based on the months of student financial aid granted by Kela.

These calculations help illustrate how your student financial aid months, repayment period and interest rate affect the total cost of your student loan. The amount you can borrow depends on the state guarantee, which is the guarantee issued by Kela for your loan. The maximum amount you can borrow is the amount covered by Kela’s loan guarantee.

Frequently asked questions about student loan amount and interest rate

What will affect the total student loan amount?

For students studying at a Finnish university, the maximum student loan amount is 850 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 400 euros per month.
For students studying abroad, the maximum amount is 1,000 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 calculatorOpens new window.

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.

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.

Benefits for student customers