The Dutch government wants to increase the interest in student loans. Here is everything you need to know about this new proposal and if it will affect you.
An increase in interest in student loans
The Dutch government wants to increase the interest in student loans as of 2020. This measure will only apply to students who are starting their studies in the Netherlands from 2020 onward. From that point on, the interest on students loans will be the same as the interest paid by the government on government loans with a 10 year term. This will result in 18 percent higher monthly payments for students with a full bearing capacity.
Currently, the monthly repayment with interest that students have to pay is 70 euros. Once the measure is implemented, the repayment will be increased to 82 euros per month. At the moment the average student debt in the Netherlands is 21,000 euros.
Why is there going to be an increase in the interest in students loans?
This measure seeks to bring 226 million euros into the treasury, while keeping the loan system affordable. However, the national student union LSVb does not agree with measure and demands its cancellation. They argue that this increase in the interest in student loans will cause students to lose confidence in politicians. They are also afraid that students will build up more debts after the termination of the basic study grand, and now the increase in their student loans.
This decision by the Dutch government has also made the student situation in the Netherlands worse, considering the current student housing crisis. If by any chance you are a student in the Netherlands who is struggling with finding accommodation we have some tips for you on how to find a room, as well as the difference between private and social housing.
What is your opinion on the government’s decision to increase the interest in student loans? Let us know in the comments below!