State educational support - grant and loan scheme

Name of the instrument - Local language: Statens Uddannelsesstøtte (SU)
Name of the instrument - English translation: State educational support - grant and loan scheme
Scheme ID: 64
Country: Denmark
Reporting year: 2020
Type of instrument: Grant for individuals
Sub-type of instrument: Lump-sum support
Type of entry: Single instrument

Short description: People aged 18 and above, with Danish citizenship (or equivalent), are eligible for this scheme. They are entitled to a State grant combined with a loan (grant 2/3, loan 1/3 of total support) to cover the costs of their education and training. Every student enrolled in a higher education course is entitled to a number of monthly grants corresponding to the prescribed duration of the chosen study, plus 12 months. Within a maximum of 70 months, students can change from one course to another. If the student has used all her/his study grant portions, he/she can get a completion loan in the last year of studies. Eligible activities are general and vocational secondary education and training, and higher education. The amounts of support depend on the level of the programme the learner is enrolled in. Students must start paying back State loans no later than 1 year after the end of the year in which they graduate or give up their studies. The loan must be repaid within 15 years. No preferential treatment is applied. The system is managed by the Danish Agency for Higher Education.

Level of operation

National

Name of a part of the country

Not applicable

Name of the region (for regional instruments)

Not applicable

Name of the sector (for sectoral instruments)

Not applicable

Relevance

Key instrument

Legal basis

Lov om Statens Uddannelsesstøtte ("Act on State Educational Support")

Objective(s) and target(s)

To help students cover their living costs and provide a good framework for learning.

Year of implementation

1952

Operation/management

The system is managed by the Danish Agency for Higher Education (Styrelsen for Videregående Uddannelser) in collaboration with the educational institutions and under the auspices of the Danish Ministry of Science, Innovation and Higher Education. The agency prepares amendments of the scheme, registers applications, pays out grants and loans, offers guidance and information to the educational institutions, deals with complaints and appeals (which are decided by a Board of Appeal) and draws up budgets.

Eligible group(s)

All residents but non Danish citizens or non EU/EEA-citizens, people without permanent residence permit or without refugee status

Group(s) with preferential treatment

No preferential treatment

Education and training eligible

General and vocational upper secondary programmes, and higher education

Source of financing and collection mechanism

State funded

Financing formula and allocation mechanisms

In combination with grants, students are offered State loans (grants 2/3, loans 1/3 of total support). Students must start paying back State loans no later than 1 year after the end of the year in which they graduate or give up their studies. The loan must be repaid within 15 years. Every student enrolled in a higher education course is entitled to a number of monthly grants corresponding to the prescribed duration of the chosen study, plus 12 months. Wthin a maximum of 70 months students can change from one course to another. If the student has used all her/his study grant portions, he/she can get a completion loan in the last year of studies. Amounts (2015): For students above 20 years old, living on their own: grant DKK 5 903 before taxes; loan DKK 3 020 per month (no taxes apply); DKK 7 791 in completion loan (no taxes apply); DKK 1 511 in supplementary loan for parents (no taxes apply). Until students are 20, their grants depend upon their parents' income. When that exceeds a certain amount the grants are reduced on a sliding scale, ending in a minimum grant. Allocation: schools and universities receive applications for grant and loan through an online portal from the students, check them and pass them on to Danish Agency for Higher Education. The funds (grant and loan) are transferred directly to the students own bank account on a monthly basis.

Eligible costs

Lump sum for covering the living costs during studies

Volumes of funding

2019: DKK 20 802 300 000 (approx. EUR 2 784 220 036)2018: DKK 20 807 500 000 (approx. EUR 2 788 386 803)2017: DKK 20 590 300 000 (approx. EUR 2 766 658 157)

Beneficiaries/take up

2019: 481 612 2018: 489 540 2017: 491 537

Organisation responsible for monitoring/evaluation

Danish Agency for Higher Education and Science / Uddannelses- og Forskningsstyrelsen

Most relevant webpage - in English