Student benefits are transfer payment

Transfer payment

In economics, a transfer payment is a redistribution of income in the market system. These payments are considered to be exhaustive because they do not directly absorb resources or create output...

s that are given to students for purposes of full-time study, and require progress in studies, or obtaining academic credits. Student benefits are found in countries where education is free of charge, e.g. Finland

Finland

Finland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...

 and Sweden

Sweden

Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....

. Student benefit is paid by the state to all qualifying students, excluding only those with full-time employment and income, and is thus distinct from an individually evaluated scholarship

Scholarship

A scholarship is an award of financial aid for a student to further education. Scholarships are awarded on various criteria usually reflecting the values and purposes of the donor or founder of the award.-Types:...

.

Different forms of student benefit are:

• Direct funding for daily living expenses.
• Support for renting an apartment.
• Partially state-funded meals at student cafeterias.
• Securing student loan
  Student loan
  A student loan is designed to help students pay for university tuition, books, and living expenses. It may differ from other types of loans in that the interest rate may be substantially lower and the repayment schedule may be deferred while the student is still in education...
  
  s.

Finland

Secondary and tertiary education is free of charge. Monetary support is paid by the government agency KELA. Most student benefits are paid to students in tertiary education, but in special circumstances, smaller benefits are available also on the secondary level. Student benefits are independent of parents' income in tertiary education. In tertiary education, students in Bachelor's and Master's level programmes qualify for student benefits. Only those months spent actively studying are supported; i.e. in summer, benefits cease unless a special summer studying plan is submitted and followed.

For students in tertiary education, the figures are as follows. Direct monetary support is €298.00 per month. Rent support is 80% of rent or maximum €201.60. (The state or the universities generally do not provide student accommodation.) The state secures student loans (from private banks) for up to €300 per month. Student meals are supported by €1.67 per meal and available only on (privately operated) student cafeterias on campus, thus the effective price is about €2-3.

Persistent failure to progress in studies ultimately leads to the termination of student benefits. Likewise, when evaluated on a yearly basis, income of over €660 per month on supported months and over €1,970 per month on unsupported months reduces the student benefit. Typically, nine months are supported and three summer months are not, which gives a maximum annual income of €11,850.

In 2008, the benefits were raised: the direct support was increased by 15% and the income limits were raised by 30%.

Student benefits are available to Finnish citizens. They are not available for students entering the country for the sole purpose of studying.

See also

• College tuition in the United States
• EdFund
  EDFUND
  EdFund is the United States' second largest provider of student loan guarantee services under the Federal Family Education Loan Program . It is organized as a non-profit public benefit corporation. EdFund offers students and their families a wide range of information on the value of higher...
  
  
• Post-secondary education
• Private university
  Private university
  Private universities are universities not operated by governments, although many receive public subsidies, especially in the form of tax breaks and public student loans and grants. Depending on their location, private universities may be subject to government regulation. Private universities are...
  
  
• Student debt
  Student debt
  Student debt is a form of debt that is owed by an attending, withdrawn or graduated student to a lending institution. The lending may usually be a student loan, but debts may be owed to the school if the student has dropped classes and withdrawn from the school Student debt is a form of debt that...
  
  
• Student loan
  Student loan
  A student loan is designed to help students pay for university tuition, books, and living expenses. It may differ from other types of loans in that the interest rate may be substantially lower and the repayment schedule may be deferred while the student is still in education...
  
  
• Student loans in Germany
  Student loans in Germany
  German universities are usually free for students . Giving out student loans and grants is seen as a means to pave the way to higher education for children whose parents can't afford to fund their children's education otherwise...
  
  
• Student loans in the United States
  Student loans in the United States
  While included in the term "financial aid," higher education loans differ from scholarships and grants in that they must be paid back. They come in several varieties in the United States:...
  
  
• Tuition fees