Student loan compensation is financial aid from Kela to students with a student loan

A student loan is one of the ways you can finance your living costs while studying. You are eligible for student loan compensation if you take out a student loan during your studies and complete your degree within the standard period. The amount of the student loan compensation is 40% of the amount of your student loan exceeding 2,500 euros.

See our example calculations to compare student loan amounts and interest

Read more about the repayment of student loans

How much is the student loan compensation?

The student loan compensation may amount up to thousands of euros, depending on how large your student loan is. At best, you may get significant relief on your loan repayments after you graduate. You can use Kela's calculator (in Finnish) to check how much compensation you could get.

If you qualify for the student loan compensation, Kela will usually pay the compensation directly to your bank as an extra repayment towards your student loan.

Estimate the compensation with Kela's calculatorOpens new window (in Finnish)

Who is eligible for the student loan compensation?

You are eligible for the student loan compensation if:

  • you have started your first course of study at a university on or after 1 August 2014
  • you complete your degree within the target time and
  • you have an outstanding state-guaranteed student loan totalling more than 2,500 euros.

To qualify for the student loan compensation, you must complete a bachelor’s or master’s degree at a university or a university of applied sciences. You can only get compensation for the first degree you complete.

The applicable target time depends on the degree you are pursuing and its extent. In most cases, the target time is calculated by adding a maximum of one academic year to the standard time determined for completing the degree. If you can’t complete the degree within the target time, the target time may be extended if your studies have been prolonged for an acceptable reason (such as a military service, having a child, being ill etc.).

There is a maximum limit to the amount of the student loan compensation you can get, and it is determined based on the extent of the university degree you are pursuing. If you complete your degree abroad, the maximum loan amount counted towards the compensation is higher.

Getting the student loan compensation is easy: you don’t usually even need to apply for it separately, as Kela will make the decision automatically after you have completed your degree. Further information on exceptions and on how to apply for the compensation then is available from Kela.

Visit Kela’s website to find many practical examples and a calculator for estimating the amount of the compensation you might qualify for. If you can’t find an answer to your question, you can contact Kela directly.

Read more about student loan compensation on Kela's websiteOpens new window