Who can get student loan compensation
Student loan compensation applies to a student who accepted their first higher education place on 1.8.2014 or later. If the place was accepted earlier, it is enough that enrolment as attending was first done on 1.8.2014 or later.
A university of applied sciences degree and a lower or higher university degree qualify for the compensation. The compensation applies only to the first higher education degree completed, and you must have student loan of over 2 500 euros from the period of degree studies.
Deadline for completing the degree
The compensation is intended to encourage graduating on time and to reduce the debt left from higher education studies. That is why what matters is not only the size of the loan but also how quickly the degree is completed. If your studies are dragging on, find out in good time when your own deadline ends.
The degree must be completed within a time limit. The time starts from the beginning of the term in which the first study place was accepted and ends on the last day of the term of graduation. Terms of absence also count towards the time limit. For a higher degree the limit is the target time plus one year, and for a lower degree and a university of applied sciences degree the target time plus half a year:
- 300 credits: 6 academic years; 330 credits: 6.5 academic years; 360 credits: 7 academic years
- 180 credits: 3,5 academic years; 210 credits: 4 academic years
- 240 credits: 4,5 academic years; 270 credits: 5 academic years
Extension of the time limit
The time limit can be extended for an acceptable reason. Examples include at least 30 days of continuous military or civilian service, at least 30 days of pregnancy, maternity, paternity or parental allowance, and at least 30 days of sickness allowance. On the basis of military service and illness, the extension is half a year per term, at most two years in total.
Home care allowance, working or changing studies are not acceptable reasons. If you receive a negative draft decision but have an acceptable reason, you can request a reprocessing in OmaKela within 37 days of the date of the proposal.
How much compensation you get
The compensation is 40 % of the part of the student loan that exceeds 2 500 euros. A maximum of 400 euros of loan per support month is taken into account, so the maximum amount depends on the scope of the degree. The loan is calculated as it stands on the last day of the graduation term, excluding capitalised interest, and a loan already repaid reduces the compensation. The compensation is tax-free.
- 180 credits: compensation up to 3 320 €
- 210 credits: up to 4 120 €
- 240 credits: up to 4 760 €
- 270 credits: up to 5 560 €
- 300 credits: up to €6,200
- 330 credits: up to €7,000
- 360 credits: up to €7,640
Do I have to apply for the compensation?
Usually not. Kela makes the decision automatically when it receives information on the loan amount from the bank, at the latest by the end of the term following graduation. Those who graduate in autumn usually receive the decision in April and those who graduate in spring in November.
An exception is a lower university degree: if you want compensation on the basis of it, apply for it separately within two years of completing the degree. The compensation is usually paid directly to the bank to reduce the loan. If the loans have already been repaid, the compensation is paid to you.
State guarantee for a student loan
Kela grants a state guarantee for the student loan, and the loan is applied for from your own bank, which decides whether to grant it. The maximum guarantee amounts have been in force since 1.8.2024. The guarantee is valid for up to 30 years from the drawdown of the first loan instalment, and the instalments and drawdown dates appear in the student financial aid decision and in OmaKela.
- University student and upper secondary student aged 18 or over: €850/month
- Upper secondary student under 18: 400 €/month
- Studying abroad: €1,000/month
Changes to the compensation have been proposed
Kela reported on 25.9.2026 a government proposal under which the new model would apply to those starting their studies on 1.8.2027 or later. Those graduating within the target time would receive a 45% credit, and those graduating within the deadline 30%, on the part of the loan exceeding €8,000, up to a maximum of €7,000. The changes have not yet been approved. You can see current and upcoming changes and application periods in Opintotutka.
Frequently asked questions
Do you have to apply separately for student loan compensation?
Usually not, because Kela makes the decision automatically. On the basis of a lower university degree, the compensation must be applied for within two years of completing the degree.
Is student loan compensation taxable income?
No. No tax is paid on the student loan compensation.
Do the proposed changes apply to people who are already studying?
Under the proposal, the new compensation model would apply only to those starting their studies on 1.8.2027 or later. The proposal has not yet been approved.
Calculate it yourself
Ready-made tools
- Student budget and application calendar · Monthly budget, student financial aid and application deadlines
Sources
- Kela: Student loan compensation
- Kela: Who can get a student loan (banks)
- Kela: Government proposes changes to student financial aid from 1.8.2027
The article is general information and does not replace the guidance of an authority, a lawyer or an adviser. Check up-to-date information from the sources.