A student loan compensation is a form of financial aid offered by Kela to students who have taken out a student loan.

A student loan is one way to finance your life while studying. You can agree on the repayment schedule flexibly based on your circumstances and repayment capacity after you have completed your studies. You won’t need any collateral or guarantors for a student loan because the Finnish state will guarantee the loan for 30 years.

Read more about repaying the student loan.

Compare student loan amount and interest rate with our indicative example calculations.

Did you know?

Enjoy our student benefits until you turn 31

Our student benefits will be available to you until your 31st birthday, even if you completed your studies earlier. After this, the benefits and services will be priced according to your banking volume.

Read more about student benefits.

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. Check with Kela's calculator (in Finnish) how much compansation 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.

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 KelaOpens new window.

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.

What is a student loan tax deduction?

You may also have heard someone talk about a student loan tax deduction. It is a tax deduction only applicable to students who have started their first course of study at a university before 1 August 2014. It allows eligible students who make student loan repayments to the bank to pay less taxes.

Read more about the student loan tax deduction on Kela’s website.Opens new window

Student loan from Nordea

Student loans are state-guaranteed loans that you can apply for yearly.

How to apply for a student loan

Free benefits for student customers

We offer a wide range of services and benefits free of charge to university students. Sign up as a student customer to get the best prices and benefits.

Become a student customer

Why is it smart to save?

If you have enough money to live on and something left over at the end of the month, the smart thing to do is to start saving.

Read why it is smart to save