Prime Minister Petteri Orpo's Government, which started its work in summer 2023, will launch an overhaul of the student financial aid system. The overhaul will examine the level of study grants, the size of student loans, the amount of student loan compensation, tax-exempt income thresholds, the status of students with families, and housing support.
The Government will assess the adequacy of income limits and consider the possibility of raising them in connection with its mid-term policy review session. Better alignment of apprenticeship training and student financial aid will also be reviewed.
The Government will also implement an overall reform of the general housing allowance. With regard to students, the Government will develop a financially attractive option to complement the general housing allowance that will favour shared student housing.
Financing: Student financial aid
The resources for financial aid for students are determined in the national Budget, where appropriations for student financial aid expenditure belong under allocations for the Ministry of Education and Culture.
Central government expenditure on student financial aid also includes the housing supplement for students, the student loan compensation for students who have completed a higher education degree, and costs arising from central government guarantees for student loans, the school transport subsidy and the meal subsidy for students in higher education.
In 2025, student financial aid expenditure amounted to approximately EUR 1 015 million, of which study grant expenditure accounted for approximately EUR 695 million.
In 2025, the study grant was paid to 218,956 students in higher education and 111,398 students in other educational institutions. The housing supplement was paid to 165,322 students and the school transport subsidy to 116,006 students.
