Applicants must be financially competent (18 years of age) in the semester for which a loan is applied. Also, the applicants must fulfil certain conditions of residence and/or requirements for connections with Iceland as Icelandic or foreign nationals. in order that a student can be considered eligible by the Fund, he/she must not be in default with the Fund when a loan is applied for.
A guarantee for a student loan is required if the borrower is not considered reliable. A borrower is not considered a reliable if he is on a default list, his estate is in bankrupt proceedings or if the Fund has had to write off his or her loans. Students must be registered in a full course of an eligible to qualify for student loan.
The minimum academic progress for each semester is 22 ECTS-units or their equivalent. A student who receives a study grant according to the Act on student grants no. 79/2003 (compensation grants) does not qualify for a student loan in the semester for which he/she receives the grants. A student cannot receive a loan from the fund Fund if he at the same time receives study aid from another state.
Right to Loans
Each student can receive loans for up to 480 ECTS units in all, subject to the restrictions resulting from the division of their rights to loans between levels of study.
Further details about the division of division of rights to loans between levels of study are given in Articles 3.3.1 - 3.3.5 in the allocation rules. All maintenance support granted by the Icelandic Student Loan Fund is subtract from the unit rights of the student.
Basic studies: Students are entitled to receive loans for 180 ECTS units of basic studies. Basic studies are defined as preparatory studies, apprenticeship, additional studies and basic university studies.
Master's degree studies: Students are entitled to receive loans for 120 ECTS units of basic studies. Additional employment-related university studies lasting up to one year which are not completed with a higher degree may be considered as studies at master's degree level.
Doctoral degree studies: Students are entitled to loans for 60 ECTS units of doctorate degree studies.
Common rights to additional loans: In addition, each student is entitled to a loan for an additional 120 ECTS units, at the undergraduate, master's or doctorate level, at his or her own choice.