Government raises student loan ceiling to €6,000
On Thursday, the government approved a draft regulation submitted by the minister of education and research that will raise the maximum annual student loan amount from €3,000 to €6,000 starting this September.
The proposal stems from Estonia's economic situation, high inflation and rising cost of living, which means the current student loan amount is no longer sufficient to cover students' everyday study-related expenses, the government's press office said.
"The size of the student loan must allow students to focus on their studies rather than working alongside them," Minister of Education and Research Kristina Kallas (Eesti 200) said in justification of the decision.
In addition to increasing the loan amount, the ministry has also launched a broader reform of the student loan system to make borrowing more flexible and appealing for students. As part of the reform, the repayment period is set to be extended, the interest rate lowered and the requirement for a private guarantor or real estate collateral removed.
In the future, the maximum student loan amount will be tied to the state budget process — starting in the 2026/2027 academic year, it will be set in conjunction with the annual state budget law. The bill preparing the reform is currently under coordination and the changes are scheduled to take effect on September 1, 2026.
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Editor: Mait Ots, Marcus Turovski
