Finland’s student loan debt has more than doubled since the start of the 2010s, rising from about €5,000 in 2010–11 to €12,700 in 2024–25 among borrowers, according to Kela, the Social Insurance Institution of Finland. Researchers point to larger loan take‑up and weaker purchasing power of study grants as the main drivers.
What Kela’s data shows: from €5,000 to €12,700
Kela’s latest figures indicate a long‑term increase in the average student loan balance among those who carry debt. The trend accelerated in the mid‑2010s and has more than doubled over 14 years, reaching €12,700 in the 2024–25 academic year. Last year, around two‑thirds of university graduates finished their studies with outstanding student debt.
Grants’ purchasing power and larger guarantees
Kela notes that students borrow more than before while study grants no longer cover living costs as they once did. Policy changes have also mattered: the government loan guarantee has been increased in recent years, allowing higher monthly borrowing. Together, these factors have supported a shift from grants to loans in students’ financing mix.
Slight decline in new borrowing in 2023–2024
After years of steady growth, the number of student loans began to fall in 2023, with a further 1% decrease in 2024. This suggests a potential turning point, even as average balances remain high among those who borrow.
Tuition is mostly free, but living costs drive borrowing
Finnish and EU/EEA students generally do not pay tuition for degree studies in Finnish or Swedish at public institutions. Yet housing, food, and transport costs continue to push students toward loan financing, helping explain why debt has grown despite tuition‑free policies.
Student loan debt at graduation is now common
Kela’s data show that most graduates now leave higher education with student loan debt. For policymakers, the combination of higher average balances, more frequent borrowing, and rising interest assistance raises questions about the long‑term burden on younger cohorts.
