Allocation rules for the Icelandic Student Loan Fund for the school year 2022-2023 have been approved by the Minister of Higher Education, Science, and Innovation.

In the allocation rules for the next school year, the basic subsistence allowance for subsistence loans increases by 5.18% in accordance with the increase in the consumer price index. The increase in the basic subsistence is always a cause for celebration, but the Student Council emphasises the importance of it being reviewed annually, and in this context the council has assumed that the basic subsistence should fit at least the typical consumption criteria of the Ministry of Social Affairs and Labour. However, it should be kept in mind that the solution to students’ financial burden does not involve tying the basic subsistence allowance to typical consumption criterion. The Student Council places great emphasis on further instructions following the law on the arrangement of maintenance loans, so that the suspicion is reviewed between years. The current law does not make a clear requirement for the Board of the Student Loan Fund to review on a regular basis and therefore there is no requirement for the Board to act when necessary. The Student Council hopes that this will be taken into account when revising the laws on the Icelandic Student Loan Fund.

The income limit also increases and will be ISK 1.483.000. for the school year 2022-2023. The increase is based on a change in the consumer price index between years, making it an ISK 73,000 increase. The Student Council welcomes the fact that it will still be permitted to fivefold increase the income limit of students who have not been on student loans the prior 6 months. This is an important part of ensuring that a student can start borrowing without their subsistence being immediately reduced due to the income limit. However, the Student Council reiterates its position that all borrowers should be given the opportunity to apply for a fivefold increase of the income limit. Grants and loans for children will also be increased and the amount of the grant for each dependent child of the student who completes the minimum academic achievement is ISK 182.250 each semester.

The deadline for applying for student loans in the autumn semester has been changed and will now be October 15, 2022. The Student Council also considers it appropriate that the application deadline for the spring semester be changed in accordance with the change in the fall semester, as January 15 is a burdensome deadline for many prospective borrower. It must be kept in mind that student conditions can change drastically in the middle of the semester, and therefore the Council believes that the application deadlines are still too early in the semester.