VYY seconds the government’s draft proposal on changing the interest subsidy loans on student housing

The Student Union of the University of Vaasa (VYY) has issued a statement on the government’s draft proposal, which raises the interest subsidies of student housing from 95 to 100 percent. VYY considers this raise essential to enable sufficient residential construction.

VYY considers the situation in Vaasa a housing crisis.
“The situation with student apartment construction is completely unsustainable”, says VYY’s Board Member responsible for municipal affairs, Julius Pentti. “The system of production subsidies is currently incapable of enabling the construction of new apartments.”

Simultaneously, the pressure to supply affordable housing has increased due to the increase in student intake numbers and the changes to student benefits. The current production subsidies do not enable construction in sufficient quantities.

Demand for affordable housing on the rise

The housing supplement as a part of the study grant was implemented in August 2025, and it is lower than the general housing allowance. This decreases the benefit for 156,000 students. Simultaneously, higher education intake increases, which further intensifies the demand for affordable student housing.

VYY states that the current supply is not sufficient to account for these changes, and that the construction of student housing must have better conditions in the future. According to the Student Union, the pressure to cover housing costs with working alongside studies can lengthen study times and undermine the government’s goal to increase the higher education level in young adults.

Affordable housing a prerequisite for equal education

VYY considers the proposed changes to interest subsidy loans and rent regulation welcome. However, it reminds the government that these changes are a reduction compared to when student housing construction was also eligible for investment grants.

In its comment, VYY emphasizes that sufficient affordable student housing is a prerequisite for the equal opportunities of all students to receive an education. The Student Union points out that the effects of these changes to legislation must be monitored to ensure that rents stay reasonable and students’ livelihood secure.

VYY says it is especially positive and pivotal that the entry into force for these changes is fast, and that the conditions apply to all interest subsidy loan applications that are pending upon entry into force. This way, changes into legislation do not delay construction projects, and the supply of student housing is secured in the current housing shortage. 
“These proposed changes are essential to secure affordable student housing”, emphasizes Julius Pentti.

You can read the entire statement in Finnish on Lausuntopalvelu.

For more information

Julius Pentti
Board Member, municipal affairs
julius.pentti@vyy.fi

Elli Uusi-Kokko
Advocacy Specialist
044 324 8961
eva@vyy.fi