Finland proposes major changes to student benefits from August 2027

Finland’s Government has proposed a new Student Benefits Act that would change several forms of financial support for students from 1 August 2027. The proposal covers study grants, housing supplements, student loans, loan compensation and school transport subsidies.

One of the proposed changes would introduce a maximum of 52 months of student financial aid for upper-secondary studies. Students could separately receive up to 54 months of aid for higher education. The proposed limits would not apply in the same way to students covered by compulsory education or the right to free education.

More support based on the number of children

The Government also proposes changing the parental/provider supplement (huoltajakorotus) attached to the study grant.

Under the proposal:

1. €141.63/month for one dependent child
2. +€30/month for each additional dependent child
3. Kela would calculate and grant the correct supplement automatically.

This change is proposed to take effect 1 October 2027, rather than August.

Study-material supplement would end

The proposal would abolish the study-material supplement (oppimateriaalilisä) for new awards from 1 August 2027. Students who have already been granted the supplement before that date could continue receiving it until the end of the studies for which it was granted.

Changes to housing support

The proposal also includes a higher housing supplement in certain situations for students who are still subject to compulsory education. In qualifying cases, the 20% reduction normally applied to the housing supplement could be avoided, although maximum housing-cost limits would still apply.

This should not be confused with the major housing-benefit change that already took effect on 1 August 2025, when most higher-education students moved from the general housing allowance to the student housing supplement.

Student loans

The proposal would also change student-loan compensation and the treatment of interest after studies.

For students covered by the new loan-compensation model, the compensation would be 30% of the qualifying loan amount above €8,000, subject to a maximum compensation of €7,000. The proposal would also allow interest to be capitalised over a longer period after the end of student financial aid, giving graduates more time before interest payments begin.

The changes have not yet been finally adopted. The Government has submitted the proposal to Parliament, and the proposed legislation is intended to enter into force mainly on 1 August 2027. Individual measures have different proposed dates, including October 2027 and January 2028. The content can still change during parliamentary consideration.

Reference

1. https://www.kela.fi/news/government-proposes-changes-to-student-benefits-starting-1august-2027
2. https://www.eduskunta.fi/asiat-ja-aanestykset/valtiopaivaasiat/asiakirjat/edktunnus/EDK-2026-AK-45814