Student loan

The more we know, the more clearly we see things. Education is a timeless asset and it is never too late to acquire it.

The student loan is a state-guaranteed loan for university and other students designed to help defray the costs of tuition.

Who is eligible to apply for a study loan?

Eligibility applies to Estonian citizens or persons residing in Estonia on the basis of a residence permit or permanent residency, whose studies have a duration, as specified in the study programme, of at least nine calendar months, and are enrolled as a full-time student at one of the following:

• at an Estonian public university, at a state institution of professional higher education or private institution of professional higher education or at a private university operating on the basis of the Private Schools Act
• on the basis of completed secondary education, at a state or municipal vocational educational institution or at a private vocational educational institution operating on the basis of the Private Schools Act
• at an equivalent educational institution in a foreign country, with an equivalent form of study.

Students who are on academic leave are not eligible for a study loan.

Student loan amount and interest

By 1 August of each year, the Government of the Republic of Estonia establishes the maximum loan amount per borrower per year. In the 2009/2010 academic year, the maximum loan amount was 30,000 kroons

Student loan agreements can be signed at Nordea offices from 17 August 2009, and disbursement begins on 15 September 2009; and in the case of first-year students, on 1 October 2009.

• Student loans can be taken for the duration of the studies as specified in the curriculum for the relevant field of study (for the standard period of study).
• Student loans cannot be applied for retroactively, i.e. for an academic year which has already lapsed by the time the application is filed.

The borrower pays the bank an interest rate of 5% per year. Interest begins to accrue on the day that the study loan amount is transferred and ends on the day that the loan amount is repaid in full to the bank. Until the borrower graduates from the educational institution or discontinues studies for any other reason, the bank will reduce the study loan amount disbursed each time by the amount of interest payable from the previous period.

In a year that the borrower cancels the study loan or no longer wishes to receive the loan before 31 October of the current academic year, or if the borrower is no longer eligible to receive a study loan, the borrower undertakes to pay the interest payable to the bank by 1 November of the current academic year. In such a case, the bank will debit the bank account specified in the basic terms and conditions of the loan agreement for the interest.

How to apply for a Student loan

A (university) student applying for a Student loan must file the following documents with the bank:

• Written application on the bank’s form or fill online application
• Loan applicant’s identity document
• Identity documents for sureties
• Sureties’ bank account statements for the last six months, if they are not Nordea customers
• In the case of loan applicants studying in a foreign educational institution, a certificate from that educational institution regarding the fact that the applicant is studying at the institution and regarding the standard period of study (the bank has the right to request the original document and filing of a certified translation of the document)
• In the case of real estate collateral, a valuation report and insurance policy
• Consent from the loan applicant’s legal representative regarding application for the loan in the case that the loan applicant is of restricted active legal activity

All of the documents presented must be original copies.

Student loan discounts

All approved study loan applicants aged 20-26 who have a bank account at Nordea and who are Nordea Internet bank users have the opportunity to join the Nordea Check-In package, which entails the following discounts:

• Maestro debit card monthly fee only 5 kroons a month for Check-In users.
• Higher interest rates on the Saving Account deposit and bank account for Check-In customers – equivalent to the interest rates for Silver customers.
• In addition, 25% off other selected bank. 

Repayment

The first repayments of the loan principal are due 1 year after graduation unless the student continues studies at another institution during that time. After graduation, the loan has to be repaid over a period equivalent to two standard periods of study. If the borrower discontinues studies, the loan must be repaid over a period equivalent to 1.5 times the actual period of study.

If the borrower so desires, repayment of the Student loan can be suspended during child care leave (until 3 years after the birth of the child), compulsory military service or residency. The interest accruing on the balance of the loan amount will be paid to the bank by the state during this time.

  Nordea also offers a product called the Education Loan for financing study expenses that exceed the study loan amount guaranteed by the state.