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Daily Finland

dailyfinland.fi
Helsinki, Finland
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Drawdowns of student loans drop by 13% in August

Finns drew down EUR 143 million in student loans in August 2025, a 13% decrease compared to the corresponding period a year earlier, according to the Bank of Finland. From the beginning of August, higher education students were able to draw down their entire loan allocation for the autumn semester, while secondary education students could access the first loan disbursement for the autumn semester. The average loan drawdown in August 2025 was slightly above EUR 3,000. It is estimated that more than half of the drawdowns were made at the maximum permitted amount. The maximum amounts and disbursement dates of government-guaranteed student loans for the upcoming academic year remained unchanged from the previous year. During the past academic year (August 2024–July 2025), students drew down EUR 918 million in student loans, a 17% increase on the previous academic year. Following the changes introduced at the beginning of the academic year, students could, however, draw down even over 30% more government-guaranteed student loan than before. Drawdown volumes in the past academic year were slightly lower than in 2021–2022, when student loan drawdowns reached EUR 935 million, a record high in the history of the statistics. However, the increased drawdown volumes have accelerated the growth of the student loan stock from a year earlier. At the end of August 2025, the stock of student loans reached an all-time high at EUR 6.6 billion, with an annual growth rate of 5.6%. The average interest rate on student loans drawn down in August 2025 was 2.79%, which was 1.28 percentage points lower than a year earlier. The average margin on new student loan drawdowns was about 0.5%. For student loans, it is more common than for other household loans to be linked to banks own prime rates instead of Euribor rates. In August, the average interest rate on new Euribor-linked student loans was 2.76%, in contrast with 3.05% for those linked to prime rates. In August 2025, 8% of new student loans were linked to prime rates, down from 11% a year earlier.

9/27/2025 1:55:49 PM

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