Why are many students afraid of taking a student loan? The fear may be related to the fact that after graduation the student may not work immediately, and thus have to be in financial difficulties. You don’t need to start paying back the student loan immediately and the loan can be repaid by installments monthly.
The latest reform of the student financial aid is the student loan compensation. It means that if the student graduates on time, so the loan does not have to pay everything back. Student loan compensation can be up to one-third of the loan amount. When making this reform the government hoped that students start increasingly taking out student loans. As a consequence, the student does not need to work that much and the student graduates faster.
Student loans have increased due to this reform, but it reduces the students to do the work (?) and speed up graduation. Possibly it motivates the graduation in the planned time frame. The loan allows a better standard of living for a student, especially if the student is working. Especially now it is worth taking out a student loan when the interest rates are really low and falling all the time.
In Finland, about 40% of the students take out student loans. It is less compared to the other Nordic countries. In other Nordic countries the students take out a lot more loans. Up to 70% -100%. But in some Nordic countries, student financial aid is just a loan. In Finland the amount of the student loan is the smallest and the student financial aid also in its entirety is the smallest.