Financial struggles of higher education students increase in Finland amidst rising costs

The financial struggles of higher education students in Finland have noticeably increased between 2021 and 2024, according to a recent study from the Finnish Institute for Health and Welfare (THL). Approximately 20% of respondents reported that their financial situation had been extremely tight and uncertain over the past year, with older age groups experiencing this issue more frequently than younger ones. The economic difficulties are particularly pronounced among polytechnic students compared to university students.

A quarter of all respondents expressed concerns about running out of food due to financial constraints in the past year, and nearly one in five reported having to cut back on purchasing medications. The worsening financial conditions are attributed to high inflation and rising consumer prices, compounded by cuts to housing allowances starting last spring.

Lauri Kujala, president of the Union of Finnish Students, indicated that the challenges stem partly from the requirement for polytechnic students to undertake unpaid internships. Combining studies with paid work has proven difficult, and the student financial aid currently provided is inadequate, forcing most students to seek employment. A full-time student living independently receives €279.38 monthly in study aid, contingent on completing an average of five study credits per support month.

The outlook for student finances may become even more precarious, as the government plans to shift students from general housing support to housing supplements in student aid. The study found that 70% of those who took out student loans do so primarily for essential living expenses. A significant portion of students expressed they do not prefer living on loans, fearing uncertain financial futures post-graduation. The THL’s research, conducted among 3,600 students aged 18–34, highlights these pressing issues.