Changing the System of Student Support in Norway: Intended and Unintended Effects on Students

In 2002 the student finance system in Norway went through a major restructuring. The changes included an increase in student support and an introduction of progression‐dependent grants. Using two student welfare surveys conducted in 1998 and 2005, the paper analyses the effect of the changes on the students. The analysis compares the risk of study delays, the students’ weekly working hours, and the students’ concerns about student loan repayments before and after the changes among different groups of students. Contrary to the intended policy goals, the findings indicate no decline in study delays. However, the findings reveal an increase in the amount of time students spend in paid employment. This may indicate that students respond to short‐term economic incentives. Furthermore, the findings suggest increased social differences in the students’ concern for the student loan repayment after the changes.