Kela: Student loans for the autumn can be taken out starting 1 August

Kela’s press release   15.07.2019, 14:43

Kela has reviewed the student loans for students who continue their studies for the academic year 2019–2020. Decisions on student loan guarantee for the next academic year has been sent to 115 925 students. The first loan disbursement can be taken out starting from the beginning of August.

The usual amount of student loan is EUR 650 per month. A student can receive EUR 2,600–3,250 in student loan in the autumn and usually EUR 3,250 in the spring. Most students can take out their student loans for the academic year in two disbursements.

The average interest rate for student loans taken out in the spring was 0.48%, according to statistics from the Bank of Finland. The interest rates on student loans have never before been this low.

The student has to agree on when and how to take out the student loan with the bank. The student can decide whether he or she will take out the student loan and to what amount. If the student loan for the academic year 2018–2019 has not yet been taken out, the loan can be taken out before the end of July.

A positive decision on loan guarantee was now sent to 115 085 recipients of student financial aid and to 840 recipients of adult education subsidy. The right to loan guarantee for 1 405 students who continue their studies will be decided later at the same time as the student’s application for financial aid or other pending issue is processed. Students can themselves check the validity of the student loan guarantee via Kela’s e-service.

A year ago, 111,390 students received a decision on loan guarantee.

Payment default is not a hindrance for the granting of student loan guarantee

Payment default is not a hindrance for the granting of a student loan guarantee, but if the student’s earlier student loan is subject to collection by Kela, no new loan guarantee is granted.

However, loan guarantee can in certain situations be granted despite an earlier student loan being collected by Kela. With the negative decision, Kela sends more detailed instructions explaining in which situations loan guarantee can be granted.

This time, 270 students were denied loan guarantee because of collection of an earlier student loan. Last year, 260 students received a negative decision.

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