Student loan compensation

Student loan compensation is a financial aid benefit for students in higher education.

If you have started your first higher education studies on 1 August 2014 or later, you will be entitled to student loan compensation if you pass your degree within the target time.

Kela will pay student loan compensation after you have completed your degree and you have drawn down at least 2,500 euros of your student loan. The compensation will be 40% of the qualifying debt exceeding 2,500 euros. If the student loan compensation is granted to you, Kela will usually pay the compensation directly to your bank as an extra repayment on your student loan.

Significant benefit

Student loan is an easy way of financing your expenses during your studies. The student loan compensation will alleviate the repayment of your student loan after you have completed your studies. It is a significant additional benefit if you complete your degree within the set time.

Have a look at the examples below to see how much the student loan compensation paid by Kela will reduce your student loan principal after you have passed your degree within the set time:

Student loan compensation
Student loan amountStudent loan compensationRemaining loan amount
18 000 €6 200 €11 800 €
12 800 €4 120 € 8 680 €
10 800 €3 320 €7 480 € 
7 500 €2 000 €5 500 € 
5 000 €1 000 €4 000 € 

The scope of the university degree to be completed will also affect the maximum amount of the student loan credit transaction.

For further information on the target times of passing degrees, extension of the target times and application for the compensation, please refer to KelaOpens new window.