This country’s leaders met to decide the fate of the future of Finland. By the future, I mean young people, whose significance is also summed up in the government programme: “The success of our nation depends on how our young people fair.”
I moved to Tampere five years ago. During those five years, I have only had a short while to rejoice in the indexation of study grants. Then the indexation increases were frozen, the housing allowance was cut and the government thought it is actually a good idea to bring back housing supplement for students, which was abolished only seven years ago.
At the same time, a tram system, Nokia Arena and a new football stadium have been built in Tampere. The city has grown, renewed and like everything else, become more expensive. Rents are rising in all types of housing, including student housing.
In the midst of all this, the Finnish government has seen fit to transfer students back to the housing supplement, which significantly reduces their income. In addition, the investment subsidy for special groups is being cut back substantially, so that there is practically no more support for the construction of new student housing. This means that the cost of everyday living has essentially been met with cuts from both directions.
It would be smart, also for large cities, to keep students close to services to stimulate the economy. But at the moment, the political solutions do not seem to take into account the need for sufficient money to live in cities.
The government is seeking to save around 57 million euros by switching students to the housing supplement. It is estimated that for a student in Tampere, this will mean a cut of around 100 euros per month. A large proportion of students will have to increase the amount of student loans to pay their rent.
Last year, Kela had to pay banks almost 90 million euros for student loans that students were unable to pay. Regardless of the form of financial aid for student housing, the Government cannot claim quick profits from student’s pockets. It is costly not only for the individual but also for the state.