Reduced Subsidies for Student Housing

Students at Bjølsen Studentby may be facing a rent hike, following the government\'s failure to secure the expected grants for the building of student housing. Although SiO (The Student Association in Oslo) applied for subsidies for 550 student home, subsidies were only granted to 135 flats. As a result, SiO must now loan 40 million kroner from the bank, leading to increased rent payments of 1.2 million kroner. The leader of the Student Parliament Ingrid Stranger-Thorsen is concerned that the increased cost may lead to a rise in rent, and that building student housing will become more difficult, with state subsidies being so unpredictable. She also points out that family flats and flats for handicapped people are sorely needed. Plans of expanding student housing at Vestgrensa and Pilestredet Park have been delayed as a result of the unexpected reduction in state subsidies.