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

Socialists' proposal to be submitted at the next city council meeting, 15.09.2020

It is proposed that changes be made to the rules on financial assistance from Reykjavíkurborg 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 Lánasjóður íslenskra námsmanna are not entitled to financial assistance. Although studies may be loan-eligible with the fund, which is now called Menntasjóður námsmanna, this does not mean that all students can meet the conditions to be considered loan-eligible with the fund. The conditions include not being in arrears with the fund, and a guarantee for a student loan 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, then they are not considered secure. Students must be in full loan-eligible studies to be able to receive student loans. The minimum 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 here that students can apply for increased flexibility in their studies if certain circumstances prevent minimum study progress in a given semester. In that case, a maximum of 22 ECTS credits can be registered. It should be noted that support decreases as study progress, measured in credits, is less. In light of all the above, it is proposed that changes be made to Reykjavíkurborg's rules on financial assistance to accommodate students who cannot meet the loan institutions' requirements for loan eligibility. It is also proposed that Reykjavíkurborg 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:

Reykjavíkurborg'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 response regarding benefit eligibility, and those who are unemployed and without benefit eligibility. Individuals pursuing studies eligible for loans from Lánasjóður íslenskra námsmanna, now Menntasjóður námsmanna, are not entitled to financial assistance. It is important to examine each individual's circumstances because even if an individual pursues loan-eligible studies, certain conditions must be met to apply for and receive support from the student loan fund.

For example, an individual must be confident in taking a minimum of 22 ECTS credits per semester to meet loan eligibility requirements, but full-time study is 30 ECTS credits, making it clear that there is not much room for people to pursue their studies at their own pace. It should be noted, however, 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 study results in a given semester. If increased flexibility is granted, loan credits are raised to the minimum study progress (which is generally 22 ECTS credits) but never beyond that. It should be noted that support decreases as study progress, measured in credits, is less. Furthermore, one must not be on a default register when applying to Menntasjóður námsmanna, unless with the assistance 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 Reykjavíkurborg discusses study grants that may be provided. They are aimed at individuals aged 18-24 who have experienced significant social difficulties and have not completed primary or secondary school, and at single parents aged 18-24 who meet the same conditions. It is also permitted to provide 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 an individual who is unable to work alongside their studies, and an assessment indicates that without assistance, it is clear the individual 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 eligibility for a student loan can also receive a study grant, and it is permitted to provide financial support 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 eligible for loans from Lánasjóður íslenskra námsmanna.

Various things in people's lives can lead to them being unable to commence loan-eligible studies, or to meet the necessary conditions. It is therefore important that we, as a local community, in this case Reykjavíkurborg, accommodate those individuals who are interested in commencing studies and not stand in their way. At the same time, it is important that Reykjavíkurborg urge 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 according to unemployment insurance laws, unless the 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, as this is such a low study load that the studies are not considered loan-eligible by Lánasjóður íslenskra námsmanna. Recently, the Minister of Social Affairs and Children introduced 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 commence studies next year or in the spring semester of 2022 in secondary schools or universities without such having an impact on their benefit eligibility and its utilization.

The idea behind the aforementioned socialists' proposal is to ensure that those who are not entitled to support from anywhere else but are confident in pursuing studies, are enabled to do so. This opens doors to diverse knowledge creation.