Students in Luxembourg have faced an acute housing shortage

The main problem facing students in the run-up to the new academic year remains the shortage of affordable accommodation. Mattis Noël, President of the Association of Student Clubs in Luxembourg (ACEL), emphasises that the root cause lies not in high rents, but in a physical shortage of supply. Expanding the stock of student halls of residence could increase competition and naturally bring down prices in the market. It is worth noting that only 11 per cent of Luxembourgish students remain in their home country to study, amounting to around 4,200 people. The overwhelming majority, 89 per cent, go abroad – primarily to Germany (4,400) and Belgium (3,080).

At the same time, the financial aid reform introduced in June has brought about a number of positive changes. The government has increased mobility grants, introduced partial reimbursement for language exams and approved the indexation of payments every six months. The interest rate on student loans has been reduced from 2 per cent to 1.8 per cent, and graduates can now look forward to a financial bonus upon completion of their studies. Although the association generally supports these measures, it insists on further development of the system. In particular, criticism has been levelled at the current rule which deprives students of a mobility grant if they live and study in the same country. Furthermore, postgraduate students have been excluded from the core legislation on student grants in favour of broader targeted funding for their research projects.

On the other hand, the concerns raised by the Green Party (déi gréng) regarding the deterioration of conditions for students who combine their studies with work did not find widespread support amongst student representatives. Under the new rules, in order to retain their state grant, such students may not earn more than 80 per cent of the minimum wage. However, Mattis Noël points out that this group of students is less reliant on grants and, in any case, retains the right to receive student loans.

A far more serious problem remains the regulatory framework governing work placements. Whilst the requirement to pay interns is a positive step, in practice it makes it more difficult to find work placement opportunities because employers are unaware of the details of the legislation. The Association has identified direct contradictions between the Labour Code and the Social Security Code, a matter of which the Minister for Labour, Marc Spautz, and the Minister for Health, Martine Deprez, have already been informed. However, a recent government review of the regulatory framework has failed to resolve these legal conflicts, leaving employers and students in a state of legal uncertainty.