Finnish municipality offers cash to graduates who relocate to combat population decline

The central Finnish municipality of Joutsa will reimburse part of the student loans for graduates who move there, launching a two-year pilot program in 2027 to attract residents, workers, and businesses, public broadcaster Yle reports.

The initiative, proposed by the municipal council, follows similar schemes in three Lapland municipalities—Inari, Sodankylä, and Utsjoki—where graduates receive up to €5,800 in loan reimbursement over three years. Norway has also tested student loan incentives as part of regional development policies.

Joutsa, a 4,500-resident town along Highway 4, differs from its northern counterparts by focusing on general population growth rather than addressing a skilled labor shortage, according to Mika Sirkka, the municipality’s director of welfare and education. “Our starting point is attracting residents,” Sirkka told Yle, noting that Joutsa already has sufficient access to skilled workers.

To qualify, graduates must live in Joutsa for at least one year. The municipality will finalize reimbursement amounts and total budget this summer and fall, with Sirkka acknowledging that cost estimates remain uncertain. Challenges include limited rental housing and job opportunities for highly educated professionals, though demand exists in early childhood education and social welfare sectors.

A 2021–2022 study by the University of Eastern Finland found that 50% of university students and 63% of university of applied sciences students would consider relocating to sparsely populated areas. That figure rose to two-thirds of university students and three-quarters of applied sciences students if the annual reimbursement reached €2,600. Early education, psychology, and special education students showed the highest interest, while medical and dental students were the least willing to move.

Lapland emerged as the most appealing region in the survey, with respondents citing nature, affordable housing, and tranquil living as key attractions. Finland’s Ministry of Education and Culture, which commissioned the study, later drafted legislation to enable such pilots.

Sirkka remains optimistic, calling the program “good municipal marketing” that could position Joutsa as an attractive place to live, even for commuters from nearby areas.