“Reducing the subsidy portion of the student allowance is wrong and outrageous,” says the vice president of The Swedish National Union of Students, Erik Pedersen, about the proposition presented by the Swedish Minister for Finance, Anders Borg. And Erik Pedersen is backed up by Clara Lundblad, president of Lund University Student Unions.
In the 2014 Budget Bill, Swedish Minister for Finance, Anders Borg, suggests the the subsidy portion of the student allowance be reduced by 300 SEK per month, whereas the loan portion be increased by 1,000 SEK. This is something that Erik Pedersen, vice president of The Swedish National Union of Students, finds outrageous.
“The fact that they cut into the subsidy portion is wrong and outrageous. Previously, there have been discussions about the study allowance consisting of 60 percent loan, and 40 percent subsidy. This doesn’t exactly make it any better,” he says.
“The positive aspect is the fact that the study allowance is increased by 700 SEK.” Our Student Budget Bill of last year indicated that students account for a 750 SEK deficit each month, so the positive side to it is that this might cover the students’ expenses,” says Erik Pedersen.
Photo: Carl-Johan Kullving
Increase the subsidy portion instead
“It’s highly problematic and not the right way to go at all. An increased loan portion results in an insecure factor for future students, and Sweden is running the risk of burying a younger student generation in debt,” says Clara Lundblad, president of Lund University Student Unions.
She would rather have an increase of the subsidy portion, in order to cover the expenses leading to the students’ monthly 750 SEK deficit, which is reported by the The Swedish National Union of Students Budget Bill.
How will you influence the politicians?
“We’ll influence the politicians, but we have to consider the best way to operate in this question. Maybe we’ll collaborate with another organization to prompt this question, so right now it’s hard to say when and how,” says Clara Lundblad.
Increased debt problematic
Erik Pedersen believes a larger loan portion of the study allowance will lead to consequences for the students.
“An increased debt leads to a reduced desire to apply for the study allowance, and there’s a risk there won’t be anything left to facilitate the students, as originally planned.” The students’ social-economic background will factor in more, where some might be discouraged by an increased debt.
“It will lead to a twisted recruiting procedure, where everybody who wants to study at the university won’t be able to,” says Erik Pedersen.
“The government neglects the fact that the students are an investment for Sweden and the future, and not a liability,” he says.
Text: Carl-Johan Kullving
Translation: Maximilian Aleman-Tennell
