Student loans and grants, general information
Students who are in a credit-eligible program can finance their studies with loans from the Student Loan Fund, subject to certain conditions. Students in upper secondary school can also receive grants or seek assistance from various funds run by institutions, companies, associations and individuals.
Student loans
The Fund provides loans for higher education at approved schools or institutions of higher education that provide a path to a degree at university level. The Fund may provide loans for vocational and secondary education.
The Student Loan Fund provides student loans and student fees to students with certain conditions. The Fund also takes into account student family circumstances when it comes to housing costs and child support.
Student loans are paid out monthly. The maximum total amount of tuition fees for all learning processes is stated in the Fund's loan rules, but no more than 1/3 of the maximum tuition fees loan in basic education can be obtained during a study year. Further understanding can be found in Loans rules that are issued on the webpage for each school year.
Students who plan to study abroad are advised to check whether the program or school is on the fund's list of schools or programs that are eligible for loans.
Student loans are based on the amount of living in Iceland and are defined in the Loan Rules each year. However, in individual countries additional loans are granted as there is a significant difference between Icelandic and Icelandic living standards. With this you can estimate the amount of the loan.
Furthermore, loans are granted for trips to a place of study abroad once every academic year and also loans are granted for a place of study in Iceland if students have legal residence at least 100 km from the capital area or other school areas.
All taxable income of students that forms the tax base can affect the amount of student loans. To deduct student loans, 45% of income is used to meet student free income limits, but the free income limit varies as shown in each school year. The free income limit may be increased five times if a student has not been in a credit-eligible program or on student loans with the Fund for at least 6 months.
The student must inform the creditor of any changes to his or her property.
Students can receive a maximum of 480 ECTS credits or equivalent for all courses of study. 300 ECTS credits in the undergraduate or graduate program, 60 ECTS credits in the doctoral program and 120 additional credits of their choice in the undergraduate, graduate or doctoral program.
Exemptions from the study process are granted for example due to illness, disability, dyslexia or other specific learning difficulties, but the exemptions are governed by special rules set out in the Fund's loan rules.
Repayments of student loans usually begin one year after the end of your studies and interest is calculated from the end of your studies. Repayments are made monthly and the student has a choice whether they are income-related (with certain conditions) or repayable as a loan with equal payments and then whether they are indexed or non-indexed.
Study Contribution and Child Pension for Study Purposes
Study Contribution may be paid to people aged 18 to 20 years old, if the conditions for child support payments are met. According to the law on children, a parent who is entitled to child support may be ordered to make a contribution to education.
Study Contribution - Social Security Administration
In addition, young people can apply for a child pension because of studying if one or both parents are pensioners for old age, rehabilitation or disability or if one or both parents are deceased.
If a young person lives in a different place, i.e. has a different legal domicile than his/her parents, he/she may apply for an educational allowance from both parents.
The condition for payment is that the young person attends a study or training in a recognised secondary school for at least six months per year.
Child Pension for study purposes - Social Security Administration
A young person applies for a child's/pensions allowance on a form and submits it to the Social Insurance Administration or the regional agencies, along with supporting documents.
Payments for young People - Social Security Administration
Grants
The church's charity
Secondary school students can apply for grants to finance their studies. In addition, university students can apply for a variety of grants to finance studies and research, both at home and abroad. For more information, please visit the University of Iceland's website.
University of Iceland - Grants and Funds
The educational staff at all levels of education are also offered the opportunity to apply for grants for educational projects.
Service provider
The Icelandic Student Loan Fund