Collectively, as a society, we agree that education should be a path to progress. Why, then, do we place so many obstacles in the path of those who choose to embark on this path? Obstacles that result in many graduates either being entangled in debt or on the verge of burnout?

The situation today

The goal of the student loan system in Iceland is to reward those who perform well in their studies and complete them on time. The way the system is designed, it only meets this goal in a very limited capacity. Whilst it is possible to have a portion of student loans forgiven if studies are finished on time, the loans are too low during the study period, and the criteria for what is considered full-time study are too strict—not to mention those who experience some form of setback during their studies and need to take a break should have more security.

Making ends meet

Let's look at the life of a university student in a full three-year study program. The student lives in a room at the student housing complex, does not own a car, and can survive on the minimal substance loan amount (which of course is a joke, but let's use that number for calculating). The student room costs 118,000 kr. a month, and the minimum subsistence according to the Student Education Fund is about 167,000 kr. In total, that is 285,000 kr. a month. However, student loans are only 149,000 kr. a month…for nine months of the year.

Accumulation of debt in a three-year university study based on minimum subsistence, a single room in the student housing complex, and income solely from student loans.

In the nearly three years until they earn a bachelor's degree, there is a shortfall of nearly 5.5 million kr. to make ends meet!

How do students bridge this gap? Many get a part-time job alongside their studies and work evenings and weekends to make ends meet. This is in addition to the already full-time job of studying, and negatively impacts their social life, hobbies, family, not to mention their ability to focus and truly be present and creative in their studies.

If education is to be a path to progress, we need to provide students with a head start in life, enabling them to secure a roof over their heads, go abroad for further studies, and have time and energy to wholly engage at the moment whilst also moving toward future goals. This attitude that students need to suffer through their studies, that students need to work full-time during the summer so that they can barely work part-time along with full-time study during the winter, is dangerously shortsighted and detrimental to students' well-being.

Students should have the flexibility to focus on their studies and participate in the university community. University studies are not just about reading books and submitting assignments. It's a community like few others. Spending time with people from different fields of interest, from different departments of the universities, and exchanging ideas is a recipe for fertile thought and innovation—from which many of the country's largest companies have sprung. It’s not just the students who miss out if they cannot participate in the university community, but all of Iceland.

Future vision of the Pirate Party

No one knows how many good ideas, which would have received support and taken off during university studies, have been lost in Iceland because people can’t afford to seek an education. It doesn't take many such lost ideas for the opportunity cost to be much higher than the cost of a student loan system that provides people with basic subsistence.

We in the Pirate Party recognize this and have therefore proposed several key measures designed to significantly lessen the debt that students carry with them into life after graduation. We propose to increase the basic subsistence level of students for full-time study, so that it is based on basic unemployment benefits. We also propose to increase the maternity leave grants for students and to ensure the right of students to unemployment insurance during breaks in their studies.

These actions can be found in the Pirate Party's bill to improve the status of students. We also propose to lower the minimum credit amount for loan eligibility from 44 credits per year to 24 credits, to allow full student loans to be paid out even if the minimum progress requirements are not met, and to increase the grant portion of loans from 30% to 40%.

All these measures aim to provide equal education opportunities, and give students more room to deal with the difficult situations that may arise during their studies without financial concerns adding to their worries. Supporting students is an important and truly profitable investment in the future.

Education should be pursued for the sake of education. Education should not serve the job market. Rather, the students who graduate should shape the job market according to their priorities and passion. The key premise here is financial security. Students who graduate without a debt burden make different decisions. If people come out of education financially unconstrained, they have the opportunity and flexibility to make freer decisions about what kinds of jobs they pursue and accept. People are more likely to follow their passion and consider societal benefit over financial gain. In this way, we enhance people's ability to shape the economy and prosperity, rather than being servants of the current system.

Surviving on student loans