Student loan

• A state guarantee is a security instrument granted for a loan by the state. The amount of the state guarantee depends on the loan type; it guarantees a student loan in full, for example.
• The state guarantee makes a student loan a very affordable option. The reference rate applied to a student loan is the 12-month Euribor. The bank’s margin is added on top of the reference rate.
• You will receive a state guarantee decision for your student loan automatically from Kela in the case of a study grant or from the Employment Fund in the case of an adult education allowance.
• Even if you’re not entitled to a study grant, you can still obtain a loan guarantee in certain special cases. See if you are eligible for a student loan on Kela’s websiteOpens new window.
• Kela will pay back part of your student loan as student loan compensation if you have started your first university studies on 1 August 2014 or later and completed your degree within the set time.
  Read more about student loan compensationOpens new window.
• The state guarantee is valid for 30 years at the most from the first drawdown of the loan.

According to the statistics of the Bank of Finland, the interest rate on student loans drawn down in the spring was 0.48%, which is lower than ever before. The interest rate on your student loan is determined in the agreement you make with Nordea.

During your studies, you will not pay any interest. Instead, interest will be capitalised, or in other words added to the loan principal, twice a year: on 15 June and 15 December.

Interest is added to your student loan during the terms you receive student financial aid and once more after the last such term.

If your income is low, you can apply for interest assistance from Kela once you have graduated. This means that Kela will pay the interest on your student loan in full, and you will not have to repay it to Kela. You are eligible for interest assistance if your income doesn’t exceed a set limit and if your bank has begun to charge you interest instead of capitalising it. 

Before you go to study abroad, there are a few things to consider. First of all, you should find out the actual studying costs (such as tuition fees, living, rent). You also need to consider how you’ll handle your banking matters while studying abroad.

• Students living abroad can apply for a student loan raise to cover their expenses. The raised student loan amount for persons living abroad who are entitled to Finnish social security is 800 euros a month.
• If you complete your degree abroad, you can draw down your student loan for the entire academic year in one go.