Foreign Students in Finland Face Rising Costs, Lower Incomes
Sep 30, 2025
Category: Finland International Students News
Students from outside the European Union (EU) finish their degrees in Finland faster than Finnish students but rely more on social assistance, according to new data from research groups, the government, and universities.
These findings have led the Finnish government to review policies on tuition, living costs, and possible misuse of residence permits.
The VATT Institute for Economic Research reported that in recent years, non-EU students earned more credits and graduated on time at higher rates than domestic students.
Still, their average incomes are lower, and many depend on food aid and state support. By August 2025, social assistance payments to foreign-background students had already nearly matched the total amount given in all of last year.
Academic achievement, tuition pressures
The VATT report showed that students with study-based residence permits earned a median of 64 credits in the 2023–2024 academic year, compared with 54 credits for other students. Finland expects full-time students to complete 60 credits a year.
Graduation rates were also higher among non-EU students. Thirty-eight percent of those in bachelor’s programs finished on time, compared with 30% of Finnish students. At the master’s level, 58% graduated on time, versus 51% of domestic students.
Researchers partly linked this improvement to tuition reforms in 2017, which required non-EU students to pay fees. Senior researcher Juho Alasalmi of VATT noted that the study did not prove the reforms caused the change, but the timing matched.
Researcher Max Toikka added that before the fees, Finnish and non-EU students earned credits at nearly the same rate.
The report also suggested that the need to maintain academic progress to keep residence permits may push students to stay on track.
Many first-time permits go to students from South Asia, especially India and Bangladesh. About 8,000 higher education permits were issued in 2024, compared with roughly 2,000 in the late 2010s.
Income gaps, labor market difficulties
Despite strong academic results, non-EU students earn much less than their Finnish and EU peers. In 2024, their average monthly income was €770, compared with €1,350 for students without residence permits.
The VATT report also found that non-EU students work fewer hours while studying.
After graduation, they are employed at lower rates than Finnish and EU students. Many are allowed to stay in Finland but do not secure jobs at the same levels as domestic graduates.
Researchers suggested that adjusting work rights and integration support to match students’ academic performance could help close the gap.
Rising demand for social assistance
International students are also relying more on public support.
Data from the Social Insurance Institution (Kela) shows that foreign-language students received over €12 million in social assistance during the first eight months of 2025—almost as much as the €12.9 million paid out in all of 2024.
Nearly 40% of student recipients speak a first language other than Finnish, Swedish, or Sámi.
This group includes both international students and Finnish citizens with immigrant backgrounds. In both cases, demand for food aid has risen sharply.
In Vaasa, for example, Asian students now make up about one-third of local breadline users, according to Yle News.
The trend follows a record increase in non-European students entering Finnish universities, many bringing family members with them, which raises living costs.
Policy responses, political debate
In September 2025, the Finnish government set up a ministerial working group to study the issue. The group will look at the cost-of-living challenges foreign students face and the risk of students using residence permits for reasons other than studying.
Senior ministerial advisor Kaisu Piiroinen from the Ministry of Education and Culture said some students appear to have come to Finland intending to work instead of study. She noted that earlier rules let students avoid tuition fees if they switched to work-based residence permits, which opened the door to misuse.
A new law under Prime Minister Petteri Orpo’s government will close this gap by requiring those students to keep paying tuition even after moving to work-based permits, starting in August 2026.
The political debate is also shaped by a 2022 reform under then–Prime Minister Sanna Marin, which removed the requirement for non-EU students to prove they had enough financial support after their first year.
Current Interior Minister Mari Rantanen of the Finns Party has called for reversing that change, pointing to growing financial problems among students.
Reshaped mobility experience for travelers, migrants
The rise in foreign students seeking support in Finland highlights broader changes in how Europe manages migration.
Starting October 12, 2025, the Entry/Exit System (EES) will modernize border checks by replacing passport stamps with biometric data and digital records. It will track stays of up to 90 days within a 180-day period across Schengen countries.
For longer-term migrants, including students, the European Travel Information and Authorisation System (ETIAS) will launch in late 2026. Citizens of 59 visa-exempt countries will need to apply online for authorization before entering 30 European states, paying €20 per application.
ETIAS approvals will link to passports and stay valid for up to three years, but border guards can still refuse entry if requirements are not met.
Together, these systems show a move toward stricter monitoring of entry and stay in the EU. For foreign students in Finland, national policy reviews combined with EU digital checks could mean closer scrutiny of finances and visa compliance.
For future students and migrants, the rules may raise both the administrative and financial hurdles of studying or working in Europe.
Policy debates extend to migration frameworks
The debate in Finland over non-EU students’ use of social aid is part of a wider EU discussion on sustainable immigration. By tying tuition fees more closely to residence permits, Finnish lawmakers are testing policies that could influence other member states.
Similar approaches may spread as the EES and ETIAS create a shared system for tracking overstays and verifying travel intent.
With EES recording every border crossing and ETIAS pre-screening travelers from visa-exempt countries, EU authorities will have stronger tools to prevent permit misuse and overstays.
For countries with large student populations—like Germany, France, and the Netherlands—these systems could support national efforts to admit applicants more likely to succeed academically and financially.
Finland’s ministerial working group, which is reviewing living costs and potential misuse of student permits, reflects a shift toward aligning national immigration rules with EU-wide systems.
As Finland considers stricter requirements, other EU states may follow, framing them as part of broader Schengen border reforms.
Universities consider tighter admissions
Finnish universities and universities of applied sciences are also weighing changes. Some schools report that international recruitment has been hurt by unofficial agents promoting studies in Finland with false promises.
Vice-Rector Sanna Valliaro of Vaasa University of Applied Sciences said her school is considering interviews or assignments in admissions to better identify applicants committed to their studies.
Currently, universities rely on a centralized application system that requires equal treatment of all applicants, which limits their ability to screen candidates on their own.
Toward fairer opportunities
The findings reveal a key contradiction: non-EU students in Finland perform well academically but continue to face financial hardship and lower incomes.
This tension reflects Finland’s goal of attracting global talent while dealing with the economic and policy challenges that come with it.
Solving this imbalance matters not only for student welfare but also for Finland’s long-term strength in higher education and the labor market.
As Finland reviews tuition rules, social aid, and residence permit conditions, the debate now centers on whether future reforms can better connect strong academic results with fairer financial opportunities.