Need-based student aid still leaves students struggling

Even students who receive need-based study allowance can struggle with living costs, Ragne-Liis Mõttus, communications manager at the Estonian National Union of Students, told ERR’s Raadio 2.

Some students have reportedly entered sham marriages with friends or acquaintances to change how their household is counted and become eligible for support. The marriages are agreements between people who do not plan to start a life together. The union does not know how many such marriages there have been, Mõttus said, though she believes many people know one or two cases among their acquaintances.

Changing a household’s composition does not automatically qualify a student for support. Previous work and income are also considered. For example, a student who earned a high income over the summer may no longer qualify, Mõttus said.

The maximum need-based allowance is 440 euros per person per month, with additional payments of 270 or 150 euros also available. The 270-euro payment is linked to a family income below 378 euros per person. For the 150-euro payment, Mõttus referred to a parent earning less than 756 euros and the relative poverty rate in 2022.

Eligibility can depend on how the state assesses household income. A student may be denied support if a parent has left the family, earns well but does not support the child, because the state may consider the parent’s income sufficient, Mõttus said. The student may still have to cover daily expenses alone, making a separate household through a sham marriage seem like one way to change the eligibility assessment.

Even the maximum allowance may not be enough for students to manage easily given the current cost of living, Mõttus said, though it does help.

Need-based support is now a main source of financial assistance for many students, she said. The performance scholarship system changed several years ago, giving higher education institutions more discretion over what support they offer. Some still award performance scholarships, but many do not.

Students’ financial support can therefore depend partly on where they study. Students at the Internal Security Academy and the Defence Forces Academy receive a place in a dormitory and financial payments during their studies, on the condition that they take up a relevant job after graduating. Other universities and higher education institutions do not have the same arrangement.

Another concern raised recently is that graduating from university does not automatically guarantee a job in one’s field.