Yesterday, the Central Student Aid Board, CSN, published the annual report on the development and effects of student aid in 2021. The annual report presents statistics on the study grant and the extent to which students applied for study grants to finance their studies. As is well known, 2021 was not just any year, but for many students it was still characterized by distance learning. As the University Chancellor's Office, UKÄ, showed in reports about “The college and the pandemic” activity on campus was still sharply reduced at the beginning of the spring semester 2022.
CSN reports certain clear trends in its report. For example, a historically high number of students studied with study grants in 2021. This, CSN believes, is mainly a result of the pandemic, not only because the number of applicants to colleges and universities increased but also as a result of political decisions. When the government decided to temporarily abolish the tax-free amount, it became possible for more professionals to study with study grants, despite simultaneous income from work. Below are some summary points from the report:
CSN's annual report for 2021 briefly shows that:
- In 2021, there was a continued increase in the number of students with study grants. The number of students with study grants at colleges and universities increased by 4 percent. The number of part-time students with study grants also increased, by 13 percent in 2021.
- Slightly more went from work to studies, as the number of students with additional loans indicates. The number of students with additional loans increased by 25 percent in 2021. Additional loans are eligible for students who are employed before the studies.
- In 2021, the number of parents receiving supplementary allowance increased by 10% compared with the previous year. Of these, the majority were women. The additional grant is an extra grant that can be applied for by students with children.
- The decline in students' international mobility during 2020 also continued in 2021. The number of students on exchange programs decreased and in Swedish educations the number of foreign students also decreased sharply.
- For those who started the repayment in 2022, the student loan increased. For those who have studied at post-secondary level, the average indebtedness is SEK 194 (for students who have mainly studied in Sweden). At the same time, the repayment of the student loan increased.
- The study grant was sufficient for slightly less in 2021, indicates the study grant's development towards the consumer price index, the CPI. Compared with 2020, the purchasing power for the 2021 study grants was lower.
- The proportion of borrowers who received a reduced annual amount for repayment increased in 2021, where the reduction with regard to studies increased the most. In 2021, the proportion of borrowers with a reduced amount was 13,9 percent. This was an increase of 4 percent compared with the previous year.
SFS released the report at the beginning of the year Limits of the study aid where the student financial aid system was analyzed on the basis of its stated purposes: 1) to act as a recruiter for higher education, 2) to even out differences between groups and individuals in the population 3) to be socio-economically sustainable.
For the study grant to have a recruiting effect, the study grant's purchasing power is of great importance. The fact that the study grant is possible to live on is for most people a prerequisite for studying. In the report, it is clear that the purchasing power of the study grant decreased in 2021. When inflation in 2022 rises, it is likely that the purchasing power of the study grant will decrease even more.
The study grant also aims to have a leveling effect between groups in society. The fact that more students, for example, have received additional grants shows that the leveling effect is relatively good, as the current opportunities for grants are used.
The third goal of the study grant is to have a good socio-economic effect. Of course, it is difficult to compare the innumerable economic and societal benefits of the high level of education (which the study grant makes possible), against the costs of the study grant system. The study grant is by nature something that should cost society because it is a societal investment. Nevertheless, it is important that the costs of the study grant are kept at a sustainable level, both for the individual borrower and for society. The repayment rate of student loans has increased slightly. The proportion of doubtful receivables, ie the central government's expected losses as a result of, for example, loan write-offs, is also expected to decrease. Thus, society's direct cost to the system is judged to be at a reasonable level, according to CSN.
It is clear that the pandemic has had far-reaching effects on those who take out student loans and the need for study grants. The pandemic has also shed new light on the question of students' chances of becoming ill, or being able to stay at home when caring for a sick child. As SFS emphasized in the report “The limits of the study grant”, the study grant's design is based on it being supplemented by the general security systems in society. However, SFS believes that there is still a lot to do so that students do not fall between the cracks. For example, students, as well as professionals, should have the opportunity to take part-time sick leave.