Government of Finland - Government guarantee for student loans

Government guarantee for student loans

You will receive a government guarantee which enables you to take out a loan from any bank up to 850 EUR per month to fund your studies in Finland. The guarantee is Kela’s assurance to the bank that your loan will be repaid, meaning you do not need any further security to have your application approved. Kela is the Finnish Social Insurance Institution, which administers the country’s student financial support on behalf of the government. The loan forms part of the Finnish student financial support system, alongside the study grant and the housing allowance. You will only receive the amount you need. For example, the amount for nine months from September to May is 7,650 EUR. If you are studying abroad, you can borrow up to 1,000 EUR per month.

Who can apply

• Study level: You are studying at a university or other higher education institution in Finland. Upper secondary school pupils and those undertaking vocational training may also be eligible for a guarantee under separate regulations.
• Study grant: You are eligible for the Finnish student grant. In this case, you will receive the guarantee automatically; no separate form is required.
• Field of study: Open to all subjects.
• Nationality: Any nationality can apply, as long as you qualify for Finnish student support.
• No unpaid old loan: Kela may reject your application if you still have an outstanding student loan that you have not repaid to the bank.
• Not in prison: This guarantee cannot be granted whilst a person is serving a custodial sentence.

How to apply

You apply for the student grant via Kela’s ‘OmaKela’ online service. The decision on the loan guarantee is made at the same time and automatically. Once you have received this, contact a bank of your choice to arrange the loan, and the bank will decide whether to grant it to you. The guarantee is renewed for each academic year. Kela will automatically send you the decision for the following year in July.