8 Norwegian full-degree students abroad

Norwegian students who take a full degree abroad are an important element in Norway’s education policy. They also play an important role in the Norwegian labour market, supplementing workers who have graduated from a Norwegian institution. In addition to having unique specialist expertise, they also supply the labour market with the necessary skilled workforce in specific areas. In addition, the fact that Norway has a number of full-degree students abroad can help Norway achieve the targets set in terms of international student mobility. Around six per cent of Norwegian students take a full degree abroad, and most of these fully reap the positive effects that student mobility has on the individual level, such as personal development, general moral, social and cultural education, and foreign language skills. Norway has therefore established an educational support scheme that is very favourable for Norwegian students who take a full degree abroad, especially weighed up against the educational support in comparable countries. Educational support can also be used as an effective tool to implement Norway’s chosen policies, such as increased international mobility among Norwegian students, better foreign language skills, intercultural competence, and in-depth knowledge about specific countries.

8.1 What is the value of Norwegian full-degree students abroad?

Chapter 3 deals with the positive effects of international student mobility and the targets Norway has set for this kind of mobility. With regard to Norwegian students who take a full degree abroad, it is primarily the positive effects for the students themselves and for society in general that are the most relevant. The higher education institutions will have little benefit from Norwegian students taking a full degree abroad, as Norwegian higher education institutions are scarcely involved in this form of student mobility, compared with their involvement in connection with periods of study or training abroad.

In terms of the positive effects for the individual student, however, this form of overseas stay has much greater potential than stays that last only one semester or less. This applies in particular to effects such as personal development, general moral, social and cultural education, and general skills, as well as intercultural competence and foreign language skills. As a general rule, the longer the overseas stay lasts, the stronger these effects will be. Students who take a full degree abroad may also experience positive effects in terms of academic learning outcomes and motivation, but this will depend more on the individual institution and the quality of the teaching and the academic environment there. Taking a full degree abroad will also usually make the student more attractive in the labour market. In addition, some of the Norwegian students who take a full degree abroad return with relevant work experience from the country of study. This is discussed in more detail in chapter 3.

This last factor is an aspect of full-degree mobility that can yield positive effects for society in general. Full-degree students will acquire in-depth knowledge about the country they study in, and they will have networks, relations and a connection to the country that can be valuable to Norwegian society in general, employers and industry. Further, Norwegian graduates with a full degree from abroad will be able to supply the Norwegian labour market and business sector with in-demand skills and ability to innovate. Some parts of the Norwegian business sector may also need more people with qualifications in a specific area or profession than Norway is able to supply, due to limited numbers of places on programmes of study. Graduates who have taken a full degree abroad and who return to Norway to work will thus help bridge this gap.

8.2 Overview with figures from the Norwegian State Educational Loan Fund

8.2.1 Number of Norwegian students who take a full degree abroad

Table 8.1 provides an overview of the number of students who have taken a full degree abroad each year in the period 2010–2011 to 2019–2020. During this ten-year period, the annual number of people who have taken a full degree abroad has increased by nine per cent. In the last five years, between 15,000 and 17,500 students have taken a full degree abroad each year. There was a steady increase in the first part of the ten-year period, which has been followed by a marked decline since the peak year 2014–2015. The relative increase in the ten-year period as a whole is lower than the increase in the student population in the same period (30 per cent). The increase in the period is also smaller than the corresponding increase in the number of students who have had a learning period abroad (47 per cent).

8.2.2 How many of the full-degree students abroad pay tuition fees?

Table 8.2 provides an overview of the number and share of Norwegian full-degree students abroad who paid tuition fees for their education, in the period from 2010–2011 to 2019–2020. In this ten-year period, the share has remained stable at between 70 and 80 per cent of the total number of full-degree students, but the table shows that the proportion has risen by about two percentage points during the period. The year-on-year increase has been fairly stable, with the exception of a slight decrease in the academic years 2013–2014, 2017–2018 and 2019–2020.

Table 8.3 provides an overview of the total number of sums paid by the Norwegian State Educational Loan Fund (Lånekassen) to cover tuition fees for Norwegian full-degree students abroad, the average cost per student who has to pay tuition fees, and the relative change for the period 2010–2011 to 2019–2020 (as a percentage). Total expenditure has risen by 54 per cent in the ten-year period, and has increased each year, except in the 2016–2017 academic year, and the last two years. During the same period, the number of full-degree students abroad who pay tuition fees has increased by 11 per cent. The sharp drop in the value of the Norwegian krone in summer 2014 contributed to the jump in expenditure seen in the following two academic years. The weakening of the Norwegian krone also meant that a greater number of students from Norway studying abroad had to cover tuition fees themselves beyond the support they received from the Norwegian State Educational Loan Fund (Lånekassen). Since the introduction of an additional loan of up to NOK 100,000 from autumn 2017, fewer students have had to find alternative ways of funding their studies.

8.2.3 Which countries do they go to?

As regards which countries they prefer to study in, Norwegian students who take a full degree abroad largely have the same preferences as the students who have a shorter learning period abroad during their studies. The English-speaking countries of the United Kingdom, USA and Australia are also among the most popular destinations for full-degree students. Higher education institutions in the United Kingdom are the most frequent destination by a wide margin. These institutions have also experienced a 10 per cent increase in the number of Norwegian full-degree students in the past ten years, although the figure has decreased by 27 per cent since the peak year of 2014–2015. The USA is getting closer to second place and has almost doubled the number of Norwegian full-degree students during the period, despite a decline in recent years. Denmark’s popularity has remained stable throughout the period. Australia was previously in the top three, but has experienced a decline of almost 50 per cent over the ten-year period.

The typical destination countries for Norwegian students who take a full degree in health subjects, Poland and Hungary, have also seen an increase in Norwegian full-degree students during the period, of 14 and 2 per cent respectively, and these countries have consistently been among the most popular destinations.

Most of the countries in table 8.4 have seen a proportional increase from 2009 to 2020, although numbers have decreased for the vast majority of countries, and especially those with the most Norwegian students, since the peak year 2014–2015. Latvia, Spain, Slovakia, the Netherlands and Italy saw the largest increases in the period. Australia, Sweden, Canada, France, Denmark and Czech Republic have all experienced a decline in the period.

8.2.4 What subjects do the Norwegian full-degree students study abroad?

Table 8.5 shows the development from 2010–2011 to 2019–2020 in the subject areas that the Norwegian students who take a full degree abroad study. Throughout the period, by far the highest number of Norwegian students who take a full degree abroad study health and social care subjects. However, the increase in this category has been relatively flat compared with the increase in the other most popular subject areas. There has been an increase of more than 10 per cent in economic and administrative subjects, social sciences and law, as well as in natural science and technology in the period.

There has been a decrease in the humanities and aesthetic subjects and teacher education and education science, but it should be noted that the subject area teacher education and education science has far fewer students than most of the other subject areas in the table.

The number of students who have taken a full degree abroad within the primary industries has increased over the period.

8.3 Educational support for Norwegian full-degree students abroad

8.3.1 Educational support

Norwegian students who take a full degree abroad are an important part of Norway’s education policy and the Norwegian workforce. At the same time, there are high expenses associated with the educational support these students receive. It is therefore only appropriate to try to optimise the use of these funds so they yield the greatest returns, also with regard to national needs and interests in a broader perspective. Due to the introduction of a variety of measures at different times to achieve different specific objectives, the educational support scheme is currently somewhat uncoordinated. The system can be difficult for students to navigate and it can be hard to find out how much money they will actually receive in loans and grants for studies in different countries and at different institutions.

Under the current regulations for the 2019–2020 academic year, an additional grant can be awarded for education at 141 overseas institutions. However, the students only qualify for the additional grant if the tuition fees are higher than NOK 133,752 for an entire academic year. This means that education at some overseas institutions does not trigger the right to an additional grant because the tuition fees are not high enough. It is largely education in English-speaking countries that can qualify students for the additional grant, while education in priority, non-anglophone partner countries does not generally qualify for the additional grant. More Norwegian students ought to take education in Norway’s priority partner countries, in part with a view to Norway gaining greater range in Norwegian students’ language and cultural skills, and the funds from the Norwegian State Educational Loan Fund (Lånekassen) are a key strategic tool to achieve this.

It should be assessed whether the current educational support system is designed to help achieve the goals the Government has set for student mobility, including the goal of getting more students to study in Norway’s priority partner countries. At the same time, it is important to ensure that the different components are coordinated and transparent, also for the students. The Government will therefore consider reviewing the educational support scheme for students abroad.

Some Norwegian citizens receive support for tuition fees (in addition to basic support) to study at “for profit” institutions abroad. These are institutions that pay dividends to their shareholders. They constitute only a small segment of the private institutions, as most private institutions are not “for profit”. In most private institutions, any profits are ploughed back into the institution, to the benefit of the employees and students. The Universities and University Colleges Act1 states that private universities and university colleges that receive state support “must use the support and fees to benefit the students. Private universities and university colleges that receive state support must not distribute proceeds” (section 8-3, third paragraph). In other words, in Norway parts of a state subsidy cannot be paid out as dividends or profit. It is unfortunate that one consequence of the system may be that the support that the Norwegian State Educational Loan Fund (Lånekassen) provides to individual students to cover tuition fees can be a source of earnings for foreign “for profit” institutions. At the same time, there is no clear boundary between “for profit” and “not for profit” institutions. The extent of support for students at overseas “for profit” institutions ought therefore to be investigated, and the Government will consider whether to introduce new restrictions concerning the types of institutions that qualify students for support. Students who have already started on a degree programme at a “for profit” institution will nevertheless be allowed to complete their studies with the same support for tuition fees as they currently receive.

8.3.1.1 Conclusions and measures

• The Government finds that the funding from the Norwegian State Educational Loan Fund (Lånekassen) for Norwegian students who take a full degree abroad ought to be used more strategically. This applies especially in respect of the quality of the universities the students choose, which countries the universities are in, and the cost level of the universities.

• The Government wants to make changes to the regulations governing the Norwegian State Educational Loan Fund (Lånekassen) in order to increase student mobility to Norway’s priority partner countries, and will return to the budgetary implications in the work on the annual national budgets.

• The Government wants more Norwegian full-degree students to choose to study in Norway’s priority partner countries for cooperation on higher education and research.

• The Government wants more full-degree students to choose study countries with lower tuition costs, to limit the level of debt among these students.

• The Government will consider reviewing the educational support schemes for students abroad with a view to making them more uniform and transparent. Educational support ought to be designed such that it ensures that more students choose studies in Norway’s priority partner countries in the education field, and in this context it will also be relevant to review the grant for language courses for studying abroad.

• The Government will look at the correlation between the information needs and the currently available information regarding the debt consequences in connection with choice of place of study, and about the actual level of support (grant–loan ratio) when applying for support. Possible information measures that address any mismatch will then be assessed.

• The Government will map out the scope of support for students at “for-profit” institutions and look at the possibility of introducing new limitations in the scheme that allows Norwegian full-degree students studying at these kinds of institutions abroad to receive support for tuition fees.

8.3.2 Norwegian educational support compared with the support in selected countries

Below is an overview of the educational support in Norway compared with the support in a number of selected countries – Denmark, Sweden, Finland, Iceland, the Netherlands and Germany. Examples have been included of both the educational support for exchange students and the educational support for Norwegian students who take a full degree abroad, in order to ensure a comprehensive picture.

8.3.2.1 Assumptions and simplifications used in the calculations in the examples

• All amounts have been calculated according to the individual country’s regulations for the 2018–2019 academic year.

• The support amounts have been converted from foreign currency to Norwegian kroner using the Norwegian State Educational Loan Fund’s (Lånekassen) exchange rates for the academic year 2018–2019.

• The support amounts have been rounded off to the nearest krone.

• Pursuant to the Norwegian State Educational Loan Fund’s (Lånekassen) regulations, the support for tuition fees can be adjusted according to the fluctuations in foreign exchange rates. In the examples below, however, we have assumed no exchange rate adjustment.

• Pursuant to the Norwegian State Educational Loan Fund’s (Lånekassen) regulations, some grants are means-tested against income, wealth and social security benefits. The examples are based on the assumption that the grants are not reduced.

• The support amounts have not been adjusted for purchasing power.

• The examples do not take into account the different country’s repayment systems.

8.3.2.2 Examples

Example 1

Christian is 23 years old and is taking a bachelor’s degree. He wants to spend an autumn semester (five months) in France as an exchange student. He must pay EUR 4,000 in tuition fees, and he will not live with his parents in France. How much can Christian receive in educational support? See table 8.6.

Example 2

Nadia is 22 years old and unmarried. She wants to take a three-year bachelor’s degree in the United Kingdom. She will not be living with her parents in the United Kingdom. She will have to pay tuition fees of GBP 10,000 per year. How much can Nadia receive in support for the entire bachelor’s degree? See table 8.7.

Example 3

Lise is 28 years old, married, and has one child. She wants to take a two-year master’s degree in the USA. She and her husband and child will move to the USA. The education costs USD 25,000 in tuition fees per year. How much support Lise can get for the entire master’s degree? See table 8.8.

8.3.2.3 Comparison of Norwegian educational support with the corresponding support in selected countries

Measured against comparable countries, the Norwegian educational support scheme is very generous for both full-degree students and exchange students. Both the examples pertaining to full-degree students shows that a Norwegian student receives the highest or second highest educational support. In addition, the size of the grant is consistently highest or second highest for Norwegian students, compared with the grant for students from the other countries.

Additionally, it is worth noting the following:

• Full-degree students fare particularly well in the Norwegian scheme.

• The Norwegian educational support scheme, which provides access to an additional grant for education at certain foreign institutions and an additional loan for education at all foreign institutions, is generous.

• Norwegian students can end up with a high debt burden.

• Applicants who receive support from others for tuition fees receive reduced loans and grants from the Norwegian State Educational Loan Fund (Lånekassen). The loan is reduced first, as applicable followed by the grant component. This can help reduce the debt burden.

• The German educational support scheme is not based on universal principles.

8.3.2.4 Conclusions and measures

• The Government finds that the educational support in Norway is very good for Norwegian students, both in its own right and measured against the support available to students in comparable countries. Educational support can also be used as an effective tool to implement Norway’s policies, such as increased international mobility among Norwegian students, better foreign language skills, intercultural competence, and in-depth knowledge about specific countries. It is also designed to help Norwegian students receive a good, relevant education.

• The Government wants more students to choose study countries and study destinations with lower tuition costs, to reduce the level of debt among full-degree students. It is a known challenge that students who take a full degree at foreign institutions that charge high tuition fees end up with large debts after graduation.

• Students must be aware of their responsibilities when choosing a place of study. When choosing where to study, students must take into account factors such as quality, suitability and relevance, but it is equally important that they also take the cost of the studies into account.

8.4 Targets for Norwegian students abroad, including full-degree students

The targets set for international student mobility that 20 per cent (Bologna Process) and 50 per cent (Quality Report) of students shall have a learning period abroad during their studies are a guiding principle for the measures proposed in this white paper. However, no specific target has been set for the number of Norwegian students who take a full degree abroad. The ambition of this white paper is to get more Norwegian students to have a learning period abroad during their studies, not necessarily to take a full degree overseas. If Norway is to attain the target of 20 per cent student mobility and get anywhere close to the target set in the Quality Report, the greatest potential lies in getting more of the students who do not currently have any form of mobility stay at all during their studies to go abroad.

Furthermore, the main argument for strengthening the internationalisation of the Norwegian higher education institutions, and to this end getting more Norwegian students to go overseas on a mobility stay, is to strengthen the quality, relevance and attractiveness of Norwegian higher education institutions. There are many positive effects of a student taking an entire degree at a foreign higher education institution. However, these are mostly relevant to the student’s own development, and the positive effects this can have for society and the economy. The Government finds that mobility stays that are well integrated into study programmes, and which are part of a larger internationalisation process at the institution, contribute most to strengthening the quality, relevance and attractiveness of Norwegian higher education institutions.

8.4.1 Conclusions and measures

• The Government holds that the target figures for international student mobility ought to include all study programmes culminating in a degree, and that students who take a full degree abroad ought also to be included in the calculation of the mobility rate.

• The Government will not introduce separate targets for the number and/or proportion of Norwegian students who take a full degree abroad in this white paper. However, the Government will ensure that the statistics will consistently also include Norwegian full-degree students abroad, so that they are included in the results used to assess the extent to which Norway has reached the “Bologna target” and the target set in the Quality Report.

8.5 Student mobility forum

Excellent, relevant information about studying abroad is an important tool to help students make sound choices regarding their studies. In 2015, the Ministry of Education and Research established a working group to look at models for how actors in the education sector can work together to provide more coordinated information to students who are planning to study abroad. The group consists of representatives of the Association of Norwegian Students Abroad (ANSA), the Norwegian Agency for International Cooperation and Quality Enhancement in Higher Education (Diku), the Directorate of Health, the Norwegian State Educational Loan Fund, the Norwegian Agency for Quality Assurance in Education (NOKUT) and Universities Norway (UHR) and is led by Diku. The Ministry of Education and Research is currently reviewing which members will continue to participate in the group, and whether to modify the composition. The Norwegian Institute for Adult Learning (Kompetanse Norge) ought to be included as a member of the group.

8.5.1 Conclusions and measures

• The Government will continue the working group for coordinated information for Norwegian students abroad and will also expand the group’s mandate so that the group also comprises representatives from the management level (i.e. the decision-making level).