Icelandic Student Loan Fund
Menntasjóður námsmanna (The Icelandic Student Loan Fund) is the new student loan system in Iceland which started its operation on July 1st 2020 and replaced the previous student loan system (Lánasjóður íslenskra námsmanna – LÍN). The new student loan system bill was passed on June 9th 2020.
The role of the Student Loan Fund is to guarantee those that fall under the scope of the law an opportunity to an education, regardless of their financial or any other position, by providing students financial aid in the form of student loans and scholarships.
The new student loan system presents a few principal changes. Students now have a right to a grant for the maintenance of a child, instead of a loan. If a student completes a degree within the period of time expected in the organisation of the school, they qualify for a study grant amounting to 30% reduction of the principal of their student loan debt including index compensation as of the date when the bond is closed. The responsibility of guarantors of a student loan that were taken in the previous system shall become invalid on the condition that there is not a default on the loan.
Students can choose to repay their loans as annuity loans or income-based loans. Only borrowers below the age of 40 at the end of studies (in that calendar year) may select income-based instalments. When a bond has been closed, the borrower may choose whether it will be indexed
or not. The interest of loans will rise and be based on the interest terms offered to the State Treasury on the market, with an addition of a 1.5% interest premium. Loans will continue to be indexed until the final date of study.
The Student Loan Fund services its clients through “Mitt Lán“ and with providing information on its website, www.menntasjodur.is
Employees provide services via telephone (+354 560 4000) and through consultations on weekdays between 13:00-15:00.