Scholarships and Student Financial Aid in Iceland

Why scholarships work differently in Iceland

Public universities in Iceland charge no tuition to any student, so the funding problem you solve for elsewhere in Europe mostly does not exist here. What Iceland does not offer is a broad scholarship system for international students to offset living costs. The University of Iceland states directly on its FAQ page that it does not offer scholarships to international applicants , and that grants and funds are reserved for students already registered at the university. Budget for living costs as your main financial planning task, not tuition.

The Icelandic Student Loan Fund

Menntasjóður námsmanna, the Icelandic Student Loan Fund, replaced the older LÍN system in 2020 and provides loans for living expenses to students enrolled in approved programs. Menntasjóður námsmanna converts part of your loan principal into a non-repayable grant progressively: 20 percent forgiven at the end of each semester, plus a further 10 percent on graduation, for 30 percent total. This is no longer a single write-off applied only when your loan is finalized, changed by Act 253/2025.

Eligibility centers on Icelandic citizens and permanent residents. Nordic citizens studying in Iceland can access support under Nordic cooperation agreements in some cases, but most other European students do not qualify for Menntasjóður loans directly. If you come from elsewhere in the EU or EEA, check whether your home country's student finance is portable to study in Iceland before you assume you need to self-fund entirely.

The Icelandic Government Scholarship

One targeted scholarship program exists for foreign students: the Icelandic Government Scholarship for the BA program in Icelandic as a Second Language at the University of Iceland, administered by the Árni Magnússon Institute for Icelandic Studies. Around 12 scholarships get awarded each year, covering the University of Iceland registration fee plus a monthly stipend for room and board, paid from September through April.

• You need at least one completed year of university-level study in the humanities

• Basic Icelandic proficiency is required, roughly equivalent to two self-study online courses

• Preference goes to applicants under 35

• Citizens of around 28 specified countries qualify. US citizens apply through Fulbright instead

• Applications must reach the institute by post, postmarked no later than 1 December, with decisions announced in January

• The scholarship can renew for up to three years total, with a fresh application each year

This program suits a narrow group, students focused on Icelandic language and humanities, rather than general funding for any degree.

Other funding routes to check

• Erasmus+ mobility grants if you study in Iceland as part of an exchange from your home university

• Nordplus funding for students moving between Nordic and Baltic countries

• EEA and Norway Grants programs, which fund some academic cooperation projects involving Iceland

• Your home country's own portable student grant or loan scheme, where eligible

• Program-specific research or teaching assistantships at the graduate level, arranged directly with a department

Contact the international office of your target university early. Funding rules and available programs shift year to year, and staff there can confirm what currently applies to your nationality and program.