6 great ways to fund your university studies
Alright, so you have decided to study abroad.
Depending where you go, it’s going to be more expensive or hella more expensive than staying in Finland.
But don’t let money matters discourage you from going to your dream university.
Here are 6 simple but great ways you can fund your studies.
Finnish loan
The first and perhaps the only loan you need comes from Finland.
Why?
Because it’s so cheap. We could get all mathsy and talk about the interest rate, but the interest is something like 100€, for your whole time at university. That is basically free money (but you of course need to pay back everything you loaned in the first place).
So even though you probably have heard that loans are bad and should be avoided at all costs, we really recommend the Finnish loan. Plus, you may be eligible to actually get Kela to pay some of your debt at the end of your university (check this out: https://www.kela.fi/opintolainahyvitys).
How do you apply for the Finnish student loan?
Every loan needs a backer. Otherwise, the bank won’t get their money back if you suddenly couldn’t pay back.
Luckily, the Finnish government is so sweet as to be your backer.
You only need 2 things to get your loan:
A decision from Kela that the government will back your student loan (valtiontakaus in Finnish)
A bank where you will get the loan from. This can be any bank you have an account in.
To get Kela’s backing for your loan, you’ll need to apply for it from Kela. As a general rule, if you are eligible for study grants, you’re eligible for the loan backing. Confirm from here: https://www.kela.fi/web/en/financial-aid-for-students-student-loan?inheritRedirect=tru
Apply for the decision as soon as you get a confirmation from your university that you’re in. This way, you’ll give enough time for Kela, and you have time to schedule a meeting with your bank. And time to congratulate yourself after you get the loan (high-five).
Yes, you need to meet with your bank. You walk in with Kela’s decision and your ID and your guardian (thanks mom). And you’ll sign the thick and scary-looking loan contract with your bank.
The bank may try to sell/give you some stuff, as they know you’re going to university abroad. Stuff you may actually need:
A way to log in to your online bank, because your Finnish bank doesn’t have branches abroad. With Nordea, this may be the small calculator-looking thingy. With OP, you may be given some papers with code numbers in it (avainlukulista)
Insurance. If you don’t have traveller’s insurance, you may want to consider that.
Stuff you probably won’t need (think about your situation though):
A record of your previous loans, or a letter from your bank. These may be “proof” that you can be trusted to open new bank accounts in the new country, or to get accommodation from landlords easier. However, in my personal opinion, neither is needed. Opening bank accounts is very easy, at least in the UK. And, again in the UK, there are plenty of student-friendly landlords that don’t require any bank letters etc.
How much loan can you get?
If you study abroad, you can get a maximum of 800€/month. Most universities have 9-month academic years, so your full loan for 1 year will likely be 7200€.
If you want more loan money for your second year of university studies, you will not need to get a new decision from Kela (Kela grants the loan backing for your whole time at university). But you will need to extend your loan with your bank.
To extend your loan, usually a simple digital form is enough, provided by your bank. If your bank confirms your request to extend the loan, you can then get another max. 7200€ loan for your second year. (You can choose a lower amount if you wish)
When can you get your sweet loan?
You can withdraw the full loan for one year at a time on 1.8. if your university starts during the autumn (1.1. if it starts during spring).
In many cases, this means that you will withdraw 7200€, feel like a king for a few days, and then you’ll use it all on your tuition fees. Sad.
When do you need to pay back the student loan?
You will accrue some interest during your university studies (even though the interest is literally only like 100€). Don’t worry about interest at all.
You will have the chance to pay back your loan at all times, but here’s when you actually need to pay it back:
Depending on the contract you make with your bank, you need to start paying back your student loan 2 years after you graduate. You may pay back sooner if you wish.
When you need to start paying back your loan (usually 2 years after you graduate), your bank will make you a repayment schedule. The money will usually be taken from your bank account automatically, but confirm from your bank.
The government will back your loan for 30 years. However, the time during which you need to pay back your loan will depend on the contract you made with your bank.
2. Loan from the country you will study in
If you wish to loan even more money than the maximum you can get from a Finnish student loan, you can apply for a loan in the country you will study in.
The application process as well as the amount you can loan will depend on the country.
UK:
Apply through SFE (UK government)
Amount: Up to £9250
Pay back only when you start earning 25 ,700£ per year. So, sometimes never.
3. Study grant = free money
If you belong to the social security (sociaaliturva) of Finland, you’ll be eligible for some free money from the government. If you’re not a Finnish citizen, you most likely won’t get a study grant from the government (but confirm with your individual situation).
The study grant consists of 3 things:
The study grant itself (opintoraha)
The government backing for your Finnish student loan
Accommodation aid
There are several factors that affect how much study grant you can get:
Your parents’ income
Your income
If you have children
Where you will live (eg whether your parents own the house you will live in during your studies)
Whether you get other aid from the government
The maximum amount you can get (as of 2019) is 460,28€ per each month you study abroad. If you study the standard 9 months, you get 4142,52€ in one academic year. And that’s free money, there are literally no obligations on your part (other than to record your information truthfully and inform Kela of any changes to your situation).
Not bad for free money.
So how do you apply for a study grant?
You can apply online via this page: https://www.kela.fi/opintotuki-nain-haet (In Finnish, but there’s an English version). The form you need to fill is about 5 pages long, but it’s very important you fill it in carefully.
You’ll need at least the following documents:
A document from your university, confirming that you have a study place there.
A document that confirms your university is a public institution, not a private one. Kela doesn’t give you study grants for private universities. (You can request a document like this from your university, or you may even call Kela and ask what proof they need. I, for example, simply attached a screenshot from Wikipedia that confirmed that the University of Warwick is a public institution. Worked out fine)
Both parents’ income statements
You may require further documents, especially if you plan to study in the United States. Confirm from Kela.
How do you know you got a study grant?
Kela will notify you online, by text, by email, or via all of these channels. The website where you handle most of your online Kela stuff is https://www.kela.fi/asiointi
When will I get my study grant?
4th of each month you study. If your university begins in October, your first study grant will arrive on October 4th.
4. Save up before university
If you can, getting a summer job before university is good.
You’ll get some pocket money and nice work experience you can leverage throughout university. Remember to look for summer jobs already in Jan-Feb, as the good places will go quickly. You may also consider simply sending emails or calling companies you like, and hope for the best.
If you don’t get a summer job, or would prefer to let your brain and body relax before you continue your studies, that’s completely fine as well. There are other ways to save up funds for your uni abroad.
Here are 8 things you can consider.
Remember to cancel any subscriptions you don’t need (eg gym membership, sim provider if you don’t plan to use your current one)
Instead of eating out as much, try to cook some of your own meals. This is great practice for your first uni year as well!
Sell stuff you don’t need. When you begin your packing, you may realize you have a lot of stuff that you simply don’t need anymore. Or they don’t fit in your luggage. Consider selling on sites like tori.fi or Facebook Marketplace. Remember also your high school books ;).
The summer before you leave to uni will likely consist of many “goodbye” meet-ups with friends. Always going to a restaurant or a coffee shop will quickly add up. Consider a walk in the park, or meeting in your or their place!
Make a budget. Sum up all the major income and expenses you’ll have next year. Then work backwards and see how much extra money you have for each month and each week. This way, you’ll quickly see whether you’re on budget, or overspending!
When you pack for uni, you probably don’t own everything you need yet. Instead of buying everything new, consider buying used.
And don’t pack everything! You’re otherwise going to end up with 5 big travel bags and pay hefty sums to transport them (and end up with pretty sore arms). It’s okay to get some stuff once you’re in uni - you don’t need to have everything on the first day. Plus, you may be overestimating your needs anyway.
Buy your flights and possible train tickets early on! You can easily save money just by being on time.
5. Foundations and scholarships
There are plenty of foundations (apurahasäätiöt) that support Finnish students who study abroad.
Some general foundations:
Idmanin säätiö (https://idmaninsaatio.fi)
Waldenin säätiö (http://www.waldeninsaatio.com/)
Kansan Sivistysrahasto (https://www.sivistysrahasto.fi/)
There can be city/municipality -specific foundations, so search for those on Google: “[municipality] + apuraha”.
Plus your school may have small scholarship endowments, so check those out as well.
In any scholarship or foundation, you usually need to provide a written application of how you will use the money (in other words, why you are deserving of the money), breakdown your costs and provide some proof of your past achievements/success.
Scotland:
SAAS (Student Awards Agency Scotland) application
The Scottish government pays for your university tuition fees (if you are an EU national)
You will need to apply through SAAS each year separately
Oxford and Cambridge:
Cambridge offers up to £3500 of need-based aid per year. In some cases this can be supplemented with college funding.
Research it more if you are applying to Oxbridge!
6. Part-time work during university
If you are really in need of money, part-time work during university may suit you. Of course, you may also work part-time if you simply wish to get more work experience.
Where do I find part-time work openings?
Often, universities have their own platform where they publicize job openings. This may also be managed by a Student Union or organisation at your university.
If you’re in the UK, Unitemps has local branches in major universities. This can be another good place to find part-time work possibilities.
How much do part-time jobs pay?
This depends on how much you work and what job you’re in.
Some jobs offer you only 2-3 hours of work each week, while some (eg waitressing) can be 8-16h per week, or even more than that.
The pay will depend. Usually, if you work for the university, the pay will be nicer (plus your commute is usually much more manageable). If you work for larger corporations, the pay may be much lower. A good salary will be upwards from £9, but depends on other factors as well (like the hours, commute and job perks).
Remember that some jobs, eg being a research assistant, maynot pay you generously. But the experience and connections and learning may be much, much more valuable than some extra money.
Do I still have time to study?
The biggest problem with working part-time during university is the time commitment.
Going into university, you will spend more time than you expect on day-to-day activities, like buying groceries, cooking dinner, washing clothes etc. Adding work on top of this can drain your energy or leave you with less time to study than you like.
If you consider working part-time, you could wait at least one month, if you can, to monitor your time usage. If you feel like you have enough time and energy to fit in work, sure, go for it.
But if you feel already exhausted or overwhelmed with studying, a part-time job can push you over the edge. So really put in some thought and take your time to figure yourself out, before you sign a job contract.
BONUS: 7th way to fund your studies
The good ol’ Finnish-Swedish saying sums this up well:
Pappa betalar :) (and because it’s 2019, mamma betalar också!).
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