Income limits for student financial aid will be increased by 50% from 2021. Additionally, the target time to graduate and qualify for student loan compensation for higher education students may be extended by one year. college year. The changes will come into effect on January 1, 2023.
Parliament approved an amendment to the Student Financial Aid Act, increasing the income limits for student financial aid.
The amendment will also make a change to the eligibility criteria for student loan indemnity.
The annual income limits will generally be raised in 2023 to a level 50% higher than that applicable in 2021. Compared to 2022, the income limits will increase by approximately 20%.
Students who receive financial aid for 9 months can have up to 18,720 euros in pre-tax income next year. The corresponding ceiling for students who receive financial aid for 10 months is 16,640 euros.
No monthly income limit applies to student financial aid. Students can earn their income at any time during the calendar year as long as it does not exceed the annual income limit.
Students studying in a country under martial law may take longer to graduate and qualify for student loan compensation
Students who graduate within a specified time can get student loan compensation. In the academic year 2021-2022, about 40 Ukrainian higher education students received financial aid from Finland. Having had to interrupt their studies in Ukraine following Russia’s attack on that country, these students could lose their right to student loan compensation.
The amended law makes it possible to extend the time limit for obtaining a diploma for students attending a school in a country subject to martial law. The target time can be extended by one academic year.
For example, students pursuing a 300-credit college degree are generally eligible for student loan compensation if they graduate in six academic years or less. However, if the country they are studying in is under martial law, students can get student loan compensation if they take seven academic years to graduate.
The target time to obtain a degree may also be extended by one academic year for other exceptional circumstances comparable in severity to a state of war. It can be a serious incident with many casualties or a natural disaster, a large-scale armed attack or a dangerous communicable disease that has spread widely.
In 2021, the average student loan allowance for students who graduated from a foreign higher education institution was 8,210 euros.