Tax credit for student loans

The student loan credit only applies to students who have started their degree program in higher academic education before 1 August 2014 for the first time.

If you have taken out a student loan and completed your degree within the target time, you may be eligible for the credit. The credit is granted for the years when you are repaying the loan.

The credit reduces your state income tax directly. If your state income tax is less than the amount of the credit, the credit will reduce your municipal tax, church tax and health care contribution on a proportional basis.

Kela decides whether you are eligible for the student loan credit and what the maximum amount of credit is. The Tax Administration grants you the credit based on the information received from Kela for every tax year when you are eligible. In other words, you do not need to claim the credit when you file your tax return.   

If you began your first course of study in higher education on 1 August 2014 or later, you may be eligible for Kela’s student loan compensation after your graduation. The student loan compensation is tax-exempt income. No pre-filled amount of the compensation is shown on your pre-completed tax return. There is no need to report the amount when you file your tax return for the year. Read more about the student loan compensation on Kela’s website.