Proposal to provide financial assistance to students who cannot afford other means of support

Socialist Party proposal to be presented at the next city council meeting, 15.09.2020

It is proposed that changes be made to the rules on financial assistance from Reykjavík City to accommodate those who cannot seek other means of support while studying. According to Article 15 of the rules, individuals pursuing studies eligible for loans from the Icelandic Student Loan Fund are not entitled to financial assistance. Although studies may be eligible for loans from the fund, now called the Student Education Fund, this does not mean that all students can meet the conditions to be considered eligible for loans from the fund. The conditions include not being in arrears with the fund, and a guarantor for student loans is required if the borrower is not considered secure. If the individual is on a default register, is undergoing bankruptcy proceedings, or if the fund has had to write off a loan against the individual, they are not considered secure. Students must be in full-time loan-eligible studies to receive student loans. The minimum academic achievement per semester is 22 ECTS credits or their equivalent. Full-time study is considered to be 30 ECTS credits per semester/term. It should be noted that students can apply for increased flexibility in their studies if certain circumstances prevent minimum academic progress in a given semester. In such cases, a maximum of 22 ECTS credits can be registered. It should be noted that support decreases as academic progress, measured in credits, is less. In light of all the above, it is proposed that changes be made to Reykjavík City's rules on financial assistance to accommodate students who cannot meet the loan institutions' requirements for loan eligibility. It is also proposed that Reykjavík City urge the state to make improvements in these matters so that education becomes accessible to all, regardless of financial situation and ability to progress in studies. We should all be able to participate in society, at our own pace.

Explanation:

Reykjavík City's financial assistance is provided to individuals and families who cannot support themselves and their dependents without assistance. The situation of those with the aforementioned income can vary, as this includes, for example, those defined as unable to work, individuals who are unemployed and awaiting a decision on benefit eligibility, and those who are unemployed and without benefit eligibility. Individuals pursuing studies eligible for loans from the Icelandic Student Loan Fund (Lánasjóður íslenskra námsmanna), now the Student Education Fund (Menntasjóður námsmanna), are not entitled to financial assistance. It is important to examine each individual's circumstances, because even if an individual is pursuing loan-eligible studies, certain conditions must be met to apply for and receive support from the loan fund.

For example, an individual must be able to commit to taking a minimum of 22 ECTS credits per semester to meet the eligibility requirements for a loan, but full-time study is 30 ECTS credits, making it clear that there is not much room for people to take their studies at their own pace. However, it should be noted that students can apply for increased flexibility in their studies if illness, childbirth, disability, or other factors such as dyslexia prevent them from achieving minimum academic performance in a given semester. If increased flexibility is granted, loan credits are increased up to the minimum academic progress (which is generally 22 ECTS credits) but never beyond that. It should be noted that support decreases as academic progress, measured in credits, is less. Furthermore, one must not be on a default register when applying to the Student Education Fund, unless through the intervention of a guarantor. It is therefore clear that not everyone is on equal footing in this matter.

Article 18 of the current rules on financial assistance from Reykjavík City discusses study grants that may be awarded. These are aimed at individuals aged 18-24 who have experienced significant social difficulties and have not completed primary or secondary school, and to single parents aged 18-24 who meet the same conditions. It is also permissible to award a study grant to individuals aged 18-24 who have not completed secondary school and have a maximum of two semesters remaining. This refers to individuals who are unable to work alongside their studies and for whom an assessment indicates that without assistance, it is clear they would drop out of their studies. Individuals who have been unemployed without benefit eligibility or have received financial assistance for six months or longer and have not completed basic education that grants the right to a student loan can also receive a study grant, and it is permissible to provide financial assistance to low-income parents for the studies of their 16 and 17-year-old children. This refers to low-income parents who have experienced long-term social difficulties. The rules state that the study should lead to the student later being able to commence studies that are eligible for loans from the Icelandic Student Loan Fund.

Various things in people's lives can lead to them being unable to start studies that are loan-eligible, or to meet the necessary conditions. It is therefore important that we, as a local community, in this case Reykjavík City, meet those individuals who are interested in starting studies and do not stand in the way of such. At the same time, it is important that Reykjavík City urges the state to make necessary improvements to the systems that are supposed to ensure that everyone in society can pursue education regardless of economic or social status. Students have not been insured under unemployment insurance laws, except when their studies are part of labor market measures. Applicants for unemployment benefits have only been permitted to pursue university-level studies amounting to a maximum of 10 ECTS credits per semester, provided that the study load is so low that the studies are not considered loan-eligible by the Icelandic Student Loan Fund. Recently, the Minister of Social Affairs and Children announced changes to laws that are intended to enable unemployed people to pursue studies without their unemployment benefits being reduced. The changes are intended to apply to those who have been unemployed for six months or longer and can then start studies next year or in the spring semester of 2022 in secondary schools or universities without such affecting their benefit entitlement and its utilization.

The idea behind the Socialist Party's (Sósíalistaflokkur Íslands) proposal is to ensure that those who are not entitled to support from anywhere else but feel capable of pursuing studies are enabled to do so. This opens doors to diverse knowledge creation.