A student loan is a good option for many to pay for their day-to-day student life when it isn't possible to combine study and work. However, you should also prepare for paying the loan back.
Student loan repayment in a nutshell
- At first, you'll only pay interests on the student loan. The first interest payments start about a year after you've drawn down student financial aid for the last time. Interests are paid every six months, in mid-June and mid-December.
- Student loan repayment begins in about two years’ time from the last drawdown of student financial aid. If you want, you can start repaying the loan earlier.
- You will draw up a personal repayment plan for your student loan with your bank.
- Student loans are amortised in variable annuities, which means that the instalment changes when the loan interest rate changes but the loan term stays the same.
- Student loans are amortised once a month. The instalment is debited directly from the loan management account you have indicated.
- The monthly loan instalment includes the loan principal repayment, interests and charges.
Capitalisation of student loan interest during the studies
Your student loan accrues interest, which is added to the loan principal for as long as you continue to draw down student financial aid. In other words, the amount of your student loan increases by the amount of interests. For as long as the interests are capitalised, you need not worry about repaying them.
- Interests due on your student loan are capitalised during the terms you receive student financial aid.
- Capitalisation of interests takes place twice a year, on 15 June and December. After your last student financial aid term, they will be capitalised for one more term. For example, if you receive student financial aid in May for the last time, interest on your student loan will still be added to the principal in December.
Repayment holiday for student loan and change of monthly repayment
- You can apply for a repayment holiday for your student loan. During the repayment holiday, you only pay interest on your student loan.
- You can also apply for a change to the monthly repayment.
- The changes are subject to a charge in accordance with OP’s list of service charges and fees. If you are an owner-customer, OP bonuses can be used for paying these charges.
Extra student loan repayment
You can make an extra student loan repayment in addition to the normal monthly repayment free of charge. This extra repayment does not defer the next monthly repayment or the payment date.
Note! Extra repayments can affect your student loan compensation or tax deduction as they lower the loan principal which serves as the basis for the compensation or tax deduction. Before making any extra repayments, check whether you are entitled to either one of these benefits.
This is how you make an extra repayment (op.fi service)
- Log into the op.fi service. In your loan affairs, select the loan you want to amortise and keep the loan number.
- Go to your Päivittäiset raha-asiat (Daily banking) in the Rahat section. Make a new payment and enter the loan number in the field where you are asked for the payee’s account number. Then proceed as instructed.
- The debit amount in your account and the credit amount in your loan can be seen on the following weekday at the latest.
What to do if you're having trouble repaying your student loan
If you're having trouble paying your student loan and interests, don't wait too long before seeking help. You can contact your own bank and find out whether there is any flexibility in your repayment plan. As a student, you may also be entitled, under certain conditions, to interest assistance paid by Kela.