Korkotuen

Korkotuen, or interest subsidy, is a Finnish government support measure designed to reduce the cost of interest on student loans. It is part of Finland’s student financial aid system and aims to make borrowing for higher education more affordable. The subsidy is intended to alleviate the debt burden after graduation and during studies.

The subsidy is administered through the national student aid framework, with payments typically coordinated by the Finnish social insurance institution and the lending banks. The government pays a portion of the interest on eligible student loans, and the borrower pays the remaining interest. In practice, this reduces the effective interest rate applied to the loan over the period of the subsidy.

Eligibility for korkotuen generally depends on being part of the official student loan system connected to higher education or other approved training programs. Applicants must meet conditions set by the program, such as active enrollment and compliance with loan terms. The specific eligibility criteria, eligible loan types, and the amount of subsidy can vary over time as policies are adjusted.

Korkotuen is one component of Finland’s broader student funding package, which also includes grants and other loan-based support. Debates around the program often focus on its fiscal cost, distributional effects, and its role in promoting access to higher education.