Student loan funds for the coming academic year can be taken out already in August

Student loans for the coming autumn term can be taken out starting 1 August. Kela grants a government guarantee for student loans, and the student applies to the bank for a loan. Because the loan is guaranteed by Kela the student does not have to put up any other security. The government guarantee is granted for one academic year at a time.

Most higher education students are not yet paid student financial aid or housing supplement for August. However, student loans can be taken out at the beginning of August, and they can be used for example to pay rent and other housing costs. Even if you cannot get any other student financial aid in August, you can draw down your student loan.

“The student loan is intended to provide financial security for students and can be used flexibly to cover their everyday expenses. It is not necessary to take out the entire student loan at once. Instead, students can themselves decide how much they wish to take out and when,” says Eeva-Maria Laaksonen, Coordinator at Kela.

Students can check the amount of their student loan, the disbursement instalments and the dates of disbursement in the OmaKela e-service or the financial aid decision.

Kela provides a student loan guarantee for one academic year at a time

Kela has issued decisions on student loan guarantees for the next academic year. The decisions have been sent to over 118,000 students who continue their studies in the autumn. If you have opted out of paper mail, you can see Kela’s decision on your student loan guarantee in the OmaKela e-service.

“When a decision on the loan guarantee has been made, the student must agree on the disbursement of the student loan and the repayment schedule with the bank. Because the student loan is guaranteed by Kela, students do not have to put up any other security for the loan,” says Laaksonen.

New higher education students do not have to apply for a loan guarantee separately. Instead, the decision is issued automatically. However, new students in upper secondary education must apply for a loan guarantee.

Repayment of the student loan usually starts about one year after the payment of student financial aid has ended. While you get student financial aid, the interest due on the loan is added to the loan principal, which means that the loan amount increases with the interest. After Kela has stopped paying student financial aid to you, the interest will be added to the loan principal for one more term. After that, you are responsible for paying the interest.

If you have not drawn down all student loan funds allocated for the academic year 2025–2026, you can do so before the end of July.

The loan guarantee affects social assistance

Students who have turned 18 years of age and apply for social assistance are usually also required to apply for a student loan. Student loans can affect the amount of and eligibility for social assistance.

When the amendment to the Act on Social Assistance entered into force in February, Kela lost the right to use discretion when deciding which students must apply for a student loan before applying for social assistance. This means that all students, including also for example young persons receiving follow-up care from child welfare services, are now expected to apply for a student loan.