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Factsheet for case SE-2020-1/705 Updated – measures in Sweden

Removal of income ceiling for student aid to facilitate work in essential services

Borttaget inkomsttak för studiemedel

Country Sweden , applies nationwide
Time period Temporary, 01 January 2020 – 31 December 2021
Type Legislations or other statutory regulations
Category Ensuring business continuity and support for essential services
– Mobilisation of a larger workforce
Author Anna-Karin Gustafsson (Oxford Research) and Eurofound
Case created 16 April 2020 (updated 20 July 2021)

Background information

The government has temporarily removed the income ceiling for all those receiving student aid. The aim of this measure is to facilitate for health and medical care students to help out in the health care sector without their student aid being reduced. However, the measure does not exclusively cover health and medical students as also other occupations are deemed key in the current crisis, and also so as to support those newly unemployed who now wish to start studying.

The student aid income ceiling is regulated in The Act (1999:1395) on student aid (Studiestödslag (1999:1395)).

Content of measure

In practice, the removal of the income ceiling means that students who have received higher incomes during 2020 than the initially set limit (of SEK 86,782 during half a calendar year), will keep all of their student grants and loans.

For students who are short of credits due to their school being unable to provide teaching during the COVID-19 pandemic, the administrating authority (The Swedish Board of Student Finance (CSN)), will take this into consideration. And those who have difficulties repaying their loans due to the COVID-19 related situation will be given the possibility to postpone or reduce the payment.

Updates

The following updates to this measure have been made after it came into effect.

20 May 2021

Measure has been extended until the end of 2021 since the demand for labour in healthcare is still high and the measure creates a stronger incentive for students to work part-time in the healthcare sector.

Use of measure

As all students are eligible, the use of this measure might be widespread. However, as many might not be able to work as usual or might even lose their jobs, the removal of the income ceiling will likely not affect all students.

Target groups

Workers Businesses Citizens
Unemployed
Workers in essential services
Does not apply to businesses Youth (18-25)

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Informed Informed
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Peak or cross-sectoral level

Involvement

No involvement.

Views and reactions

N/A

Sources

  • 30 March 2020: Crisis package for jobs and transition (www.government.se)
  • 16 April 2020: Information about the Corona virus (www.csn.se)
  • 30 June 2021: Key acts and ordinances entering into force around the second half of 2021 (www.government.se)
  • 07 July 2021: Information about the coronavirus - Income limit removed for 2021 (csn.se)

Citation

Eurofound (2020), Removal of income ceiling for student aid to facilitate work in essential services, case SE-2020-1/705 (measures in Sweden), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.