(This translation was made with the help of artificial intelligence.)

SAMOK thanks the government for ensuring that higher education was not subjected to new cuts in the budget negotiations and that the parliamentary agreement on RDI funding was not jeopardized. Education funding is still at a very low level, but avoiding new cuts gives hope that the government recognizes the importance of higher education for Finland’s future and economic growth.

“The fact that higher education funding was spared from cuts is extremely important for raising the population’s competence and increasing productivity. However, we continue to stress that higher education requires investments and predictable funding,” notes SAMOK’s Chair, Julia Väänänen.

The budget negotiations also introduced adjustment measures, one of which concerns reducing the authorization for interest subsidy loans by €365 million in 2027. This reduction threatens to become a new setback for increasing the supply of student housing.

Cuts to investment grants for special groups have already effectively prevented the launch of new housing projects. The government has proposed that in the future, student housing construction would be made possible with 100% interest-subsidized loans. However, the reduction in authorization limits proposed in the budget negotiations may now lead to student housing projects still not being launched.

“We are in a peculiar situation where the government directs students to move into cheaper apartments but does not guarantee sufficient availability of affordable student housing,” Väänänen observes.

SAMOK has previously criticized the 100% interest-subsidized loan scheme, as it could increase housing costs across the entire student housing stock in the long run. However, in the current student housing crisis, not building cannot be an option.

“The lack of investment grants has already caused significant bottlenecks in the housing market, and the narrowing of authorization limits risks further worsening the situation. The result will inevitably be more uncertainty in an already difficult housing situation,” Väänänen concludes.

Further information:
Julia Väänänen, Chair
+358 50 389 1000
[email protected]