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Estonia · Law · SE

767

The Law on Amendments to the Study Grants and Student Loans Act and the Credit Institutions Act

avaldatud riigiteatajasEstonia· Riigikogu· ET

Introduced

1 December 2025

Last action

3 June 2026 · Accepted

Status

AVALDATUD_RIIGITEATAJAS

Sponsors

Margit Sutrop, Vabariigi Valitsus

Subjects

Discovery layer

Source updated

3 June 2026

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Summary

The bill prepares a student loan reform that will make student loans more accessible to students than before. The focus of the reform is easing the conditions of student loans and updating the system to meet current needs. The most important change is the abolition of the guarantor or real estate guarantee requirement from September 2026. Instead of the previous guarantee, banks will begin to evaluate the payment obligations and payment behavior of applicants, which makes taking out a student loan possible also for those young people who so far have not been able to find a suitable guarantor. According to the bill, loan conditions will become more favorable: the interest rate will drop, and the state will in future guarantee banks a commercial interest rate of up to 1.5% + 6 months of Euribor per year. Currently, the limit is 3% + 6-month Euribor. The state will continue to guarantee both the maximum rate of student loans, 2025/2026. up to 6,000 euros per academic year, as well as the interest to be paid. An important change is also the extension of the repayment period. If until now the student loan had to be returned within twice the nominal study period, in the future the term will be extended to four times and the maximum repayment period will increase from 20 years to 25 years. A longer term means lower monthly payments and eases the financial burden on graduates. During the preparation of the reform, it has been taken into account that currently approximately 1,800 students per year on average use student loans, or only 4% of potential loan recipients. In turn, nearly 8% of them take a loan to study abroad. Student loans are issued by Swedbank and LHV at interest rates of 1.99% + 6-month Euribor and 1.95% + 6-month Euribor, respectively.

Machine translation from Estonian. The official text remains authoritative.

Timeline

  1. 1 December 2025

    AVALDATUD_RIIGITEATAJAS

    Source: SE

  2. 3 June 2026

    Accepted

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Documents

28 official files

Lõpptekst asice

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Sources

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