Iceland is one of the most beautiful countries in the world, with a small population and a high standard of living. It’s also a strong choice for international students looking for quality education in that environment. There are approximately 18,000 students in Iceland’s higher education system, of whom about 5% are international students.
Studying in Iceland can be cheaper than in many comparable countries because, as of 2026, public universities do not charge tuition fees, although all students must pay annual registration or administration fees. Students should also note that tuition rules are changing: from the 2027–2028 academic year, most students from outside the EEA/EFTA and Switzerland may be charged tuition at public universities. Living costs can still be expensive, so careful planning is important. To help reduce your expenses, here are some ways you can study in Iceland for free or at a much lower cost.
How to Study in Iceland for Free
1. Have an Excellent Application
Your previous grades are often one of the first things admissions committees review, and they can play a major role in university admission and scholarship decisions. Having better-than-average grades can make it easier to be admitted to universities and to qualify for scholarships or grants. You should aim for strong results and a clear understanding of your study field before you apply.
Another important step is to prepare a strong application. Applications are one of the main ways universities learn about you beyond your grades. Preparing early can help you improve your documents, check your academic progress, and strengthen your profile before the deadline. With strong results and a polished application, you can stand out among other applicants more easily.
2. Receive Scholarships from Universities in Iceland
Although public universities in Iceland do not charge tuition fees in 2026, registration fees, processing fees, and living costs still apply. Private institutions also set their own fee structures, which may include tuition or other program-related costs. To cover these expenses and study with little or no out-of-pocket cost, scholarships and grants are your best options.
Because Iceland has a small higher education system, scholarship opportunities can be limited and competitive. However, opportunities are available through individual institutions, government programs, research funds, and Erasmus+. Keeping up to date on these scholarships will help you prepare early and apply before deadlines.
3. Apply for Affordable Universities in Iceland
There are seven recognized higher education institutions in Iceland: four public and three private. The public universities are the University of Iceland, the University of Akureyri, the Agricultural University of Iceland, and Hólar University. Public universities do not charge tuition fees in 2026, but students must pay annual registration or administration fees. For example, the University of Iceland lists an annual registration fee of 100,000 ISK and a 20,000 ISK processing fee for applicants from outside the EEA/EFTA. The University of Akureyri also lists an annual registration fee of 100,000 ISK. From the 2027–2028 academic year, students from outside the EEA/EFTA and Switzerland should check each public university’s official fee page because tuition fees may apply.
Applying to affordable universities in the first place is a better way to reduce your total costs. In this respect, public universities can still be a good option, especially for students who begin before the new tuition rules apply or who qualify for exemptions. With an added scholarship or grant, it may be possible to live and study in Iceland at a very low cost.
Tuition-free Options for Bachelor’s, Master’s, and Ph.D. Studies in Iceland
Scholarships and grants can help you study in Iceland for free or reduce your costs significantly. However, funding is not automatic, and eligibility depends on the scholarship, degree level, nationality, and field of study. The University of Iceland is Iceland’s oldest and largest university and is also the country’s highest-ranked university in major international rankings, but its current fee page states that it does not offer funding or scholarships to prospective students. Applicants should therefore check whether funding is available through specific departments, research projects, government programs, or external scholarship schemes.
The University of Iceland lists several internal and external grants for students and staff. For Ph.D. students, the University of Iceland Ph.D. grants fund awards grants for one, two, or three years. Starting from July 2026, the grant is 6,300,000 ISK per year, or 525,000 ISK per month before salary-related expenses and taxes. The Icelandic Research Fund also supports research projects and research-based postgraduate studies in Iceland through competitive grant categories such as Project Grants, Startup Grants, Grants of Excellence, Postdoctoral Fellowship Grants, and Doctoral Student Grants. These grants are competitive and are not guaranteed student scholarships, so applicants should always check the latest eligibility rules and deadlines.
Another option is the Icelandic Government Scholarship for Icelandic as a Second Language at the University of Iceland. This scholarship is limited to eligible students from selected countries who plan to study the BA program in Icelandic as a Second Language. It covers the University of Iceland registration fee and provides a monthly stipend intended to cover room and board for one person, with payments made from September to April.
Another great way to reduce study costs in Iceland is through Erasmus Mundus (Erasmus+) Scholarships. Iceland is associated with Erasmus+, which means students and institutions in Iceland can participate in Erasmus+ activities. Erasmus Mundus Joint Masters are international master’s programs offered by consortia of universities, and full scholarships may be available for top-ranked applicants worldwide. Under the 2026 Erasmus+ rules, Erasmus Mundus Joint Master scholarships are calculated at up to 1,400 EUR per month for the duration of the master’s program, and they contribute toward travel, visa, installation, and living costs. Applicants should apply directly to the specific Erasmus Mundus program and check whether Icelandic universities are included in the consortium.
We hope that this article on how to study in Iceland for free was helpful. Make sure to also check out the Available Programs in Europe!
