The government’s proposal for the Student Financial Aid Act fails to solve the main problem regarding students’ livelihood—namely, the inadequacy of the study grant and the housing supplement. Although the government programme set enabling full-time studying as the primary goal of the reform, actual measures are nowhere to be seen.

In the proposal, the biggest changes target the student loan compensation. The student loan compensation is proposed to become two-tiered: the new model would reward those completing their degree within the target time even more, while the compensation for those graduating within the maximum time limit would be reduced. Increasing the deductible amount of the loan compensation by thousands of euros targets the compensation toward larger loans and encourages taking out even more loan.

“Students’ livelihood has been severely weakened outside of this reform work. The changes to the loan compensation do not ease students’ increased financial worries; instead, they shift the financial risk even more heavily onto the students,” criticises Suvi Savola, board member of SAMOK.

As a much-needed measure, the proposal has addressed targeted flexibilities in receiving the student loan compensation. For instance, the proposal provides stronger safeguards for the right to compensation for those completing military service or falling ill during their studies. Utilizing discretionary support months for justified reasons is also made easier. However, this measure falls short, as the conditions for receiving the loan compensation and the discretionary support months differ from each other, further complicating a system already perceived as complex.

The student financial aid was intended to be reformed in a cost-neutral manner. In the proposal, this goal is said to be met up to the year 2030, after which the proposal yields savings of 8.7 million euros by 2034.

“The government’s ‘cost-neutral’ reform turned out to be yet another cut, just as we have been warning over the past year. Cutting at the expense of students must stop,” despairs Laura Heino, board member of SYL.

Instead of cuts, investments must be made in students’ inadequate livelihood. At present, the level of the study grant and housing supplement is not enough to cover even housing costs in the Capital Region, and on the other hand, as a result of the transfer to the housing supplement, it is already harder to make study aid months stretch for the entire duration of studies. As solutions, SYL and SAMOK demand that the government make the necessary index/level increases to student benefits and increase the number of study aid months. At the very least, the housing supplement of the student aid must be tied to an index.

Further information:

Laura Heino
board member, SYL
044 906 5005
[email protected]

Suvi Savola
board member, SAMOK
050 360 9376
[email protected]