Student loans and grants
Students in the upper levels of schooling can finance their studies with loans and grants or can apply to various funds operated by institutions, companies, associations and individuals.
Secondary school students studying away from their home area, their family or who are poor can apply for a equalisation grant from the Treasury. The Study Grants Committee allocates the grant in the form of:
grants for bus services,
grants to poor students.
The families or the guardians of secondary students of small means can apply for a grant from the Icelandic Church Aid Fund for the Future for expenses.
Secondary school students can apply for grants to finance their studies. Moreover, university students can apply for many types of grants to finance their studies and research, both here in Iceland and abroad. All further information can be obtained from the Office of International Education.
The employees of educational institutions at all levels may also apply for grants that are allocated to projects in the field of education.
Students in secondary schools who are engaged in legitimate vocational training and other approved training can apply for loans from the Icelandic Student Loan Fund (LÍN).
The Icelandic Student Loan Fund grants loans to students to maintain themselves during university studies here in Iceland or abroad. The student, however, must fulfil certain requirements.
Students who have submitted the required documents receive a loan schedule as student loans are not paid until after the Fund has received data confirming study performance. The loan schedule allows the student to take a short-term loan or maintenance loan in commercial banks and savings banks. More information is available on the websites of commercial banks and savings banks.
Loans during the study time are based on maintenance in Iceland as defined by the Fund from time to time. Maintenance abroad can differ according to country and city.
Basic maintenance varies according to the circumstances and family status of the borrower. It is possible to apply for an additional loan due to unforeseen changes to the status and circumstances of the student.
Loan are also provided for school fees, if the fees exceed a certain amount in an Icelandic school and for postgraduate university studies overseas.
Borrowers are under obligation to notify of all changes to their circumstances.
Students may, subject to meeting conditions, receive loans for a maximum of five years. Students in postgraduate studies may receive a loan for an additional five years or a total of ten years.
Repayments of student loans do not begin until two years after completion of studies. Interest is calculated from completion of studies. Repayments are due twice a year.