Denmark student grant system faces loan and income changes

Denmark's student grant (SU) system faces significant changes and scrutiny regarding loan availability, income limits, and proposed budget cuts. In 2026, higher education students can access monthly SU loans of up to 3,799 DKK at a 4 percent interest rate during their studies. Repayment begins one year after graduation, with interest rates shifting to a variable rate based on the National Bank's discount rate plus a fixed supplement.

Controversy surrounds government budget proposals that aim to reduce SU for students living at home if their parents' combined income exceeds certain thresholds. Critics argue these cuts disproportionately affect vulnerable groups, including students with disabilities or mental health challenges, who may find it difficult to maintain part-time jobs while managing their studies.

Additionally, students must manage income limits to avoid being required to repay portions of their grants. For 2026, monthly income thresholds vary by education level, ranging from 15,297 DKK for youth education to 45,420 DKK for certain categories. Experts suggest that contributing extra to employer-administered pension schemes can serve as a method to reduce taxable income and stay within these limits.