Income difficulties among students on rise

Income difficulties have increased among higher education students over the past three years, according to a survey conducted by the Finnish Institute for Health and Welfare (THL).

The share of students who felt that their income was very scarce and uncertain has increased from 13% to 19% during this period, said the THL in a press release on Tuesday referring to the Finnish Student Health and Wellbeing Survey (KOTT).

Income difficulties have increased among students at both universities and Universities of Applied Sciences (USA or Polytechnic Institutes).

However, scarcity and uncertainty of income continues to be more common among UAS students (24%) than university students (15%).

The survey conducted in spring 2024 where a total of 3,600 students aged 18–34 from higher education institutions around Finland participated.

Twenty-four per cent of students reported that they were afraid of running out of food due to a lack of money, and 18% said they had to compromise on buying medicines. These experiences were clearly more common among UAS students than university students.

The results are similar to those observed among young adults in surveys of the general population.

“There are certainly several factors contributing to the increased income difficulties that students are experiencing,” said Chief Researcher Laura Kestilä.

“The rise in consumer prices and interest rates caused by high inflation affect the daily life of often low-income students and the sufficiency of their income. The situation has probably been exacerbated by cuts in housing support, which will make it even more difficult for students to manage financially in the future,” said Kestilä.

“Many students take out student loans, and most of them use it to cover essential daily expenses. A loan-based income can increase financial uncertainty, especially for those without solid employment prospects after graduation,” Kestilä added.

Most higher education students find their daily life very safe. Eighty-eight per cent of men and 79% of women feel this way. However, the sense of safety decreases slightly with age.

Sixteen per cent of students do not feel confident about their future. Among men, this share increases steadily with age.

“The results may be an indication of problems with wellbeing and income and concerns related to these areas, especially when considering the many crises of recent years,” said Research Professor Sakari Karvonen.

“The lack of prospects and hopelessness perceived by young adults are concerning signals for society as a whole. In order to strengthen faith in the future, it is important to ensure that young people have the framework needed to maintain a stable daily life. We also need to reinforce young people's resilience regarding uncertainty in the future,” Karvonen added.