Cutting from the future

As a student myself  I can’t but wonder, what is going on in the politicians’ heads. The student allowance is now only EUR 336,76 a month. If the politicians get their proposal through the allowance will be cut by 25% to 250,28 € a month. At the same time they also want to decrease the months in which student allowance is paid from today’s 50 to 45. This is starting to seem like government doesn’t want people to get higher education even though everything else in the society points otherwise. Is it not countries purpose to stay competitive through education?


One thing in this reform is something that bothers me tremendously. While they cut the student allowance they still want to keep the students’ earnings limit at same level as it is now. So you can’t work more to compensate the lesser amount of money that you get from the government anymore. Doesn’t  sound fair, not to me either. Well don’t worry, they have a solution for this also. The  government offers you more loan which you can withdraw monthly. The amount that you can withdraw today in one month is 400 €. This amount would increase to 650 € a month. In my opinion this forces people to get into debt when you just try to get a good education.  I know that for example in the U.S.A college fees are massive and most of the student are up to their ears in debt after they graduate. I can’t help but wonder, is this what the Finnish government wants for us also.


One solution  to prevent this from happening is that masters students wouldn’t get any allowance at all. From this could ensue that people don’t want to continue studying after they have received a bachelor’s degree. We could lose future CEOs just because they don’t have the money to continue their studying. So again the government makes it look like it discourages education.

What could be the results if this new reform goes through? Here are a few examples. Some  students could quit school after their money runs out  only because they don’t want to withdraw a student loan. The Worst case would probably be that someone who has withdrawn all the available loan and graduate to unemployment so to speak. Hence this person is not able to make loan amortizations. The  best case would obviously be that someone graduates to a high paying job and pays their debt back.


This is of course only one man’s humble opinion about the matter. Hopefully the politicians have more sense than to cut straight from the future of Finland.



This entry was posted in Latest news in Accounting and Finance, Personal finance. Bookmark the permalink.

5 Responses to Cutting from the future

  1. sasupatrik says:

    Furious topic I agree. It truly is worrying that the government is cutting from education which is one of the corner stones of Finnish society. On the other hand I do understand the need to cut on expenses and that these cuts are directed to all social classes.

  2. petrapit says:

    Interesting topic indeed! I agree with you that it’s a short-sighed action from the government to cut from the future! I wrote about the same topic in my blog post. Your blog post was very well written and easy to understand.

  3. mustadiktaattori says:

    Good post aripeksi, but I was hoping for some ideas on the subject how to resolve this. I think you should go for a career in politics and put deciders on order!

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