Debts above €50,000 double among Dutch students

Nearly 150,000 current and former students in the Netherlands now carry student debts of at least €50,000, according to Statistics Netherlands (CBS).

By the numbers: The group owing €50,000 or more doubled over six years, with most debt accumulated under the loan-only system, CBS chief economist Peter Hein van Mulligen stated.

Driving the news:

• The discontinued basic grant forced individuals into borrowing after ministers urged them not to fear debt, macroeconomics lecturer Ciara van Krevel said.
• Borrowing became necessary for those lacking parental support or losing allowances after study delays, student organisation Interstedelijk Studentenoverleg (ISO) stated.
• Some students could not work due to informal care duties or accumulated debt after switching studies, student union Landelijke Studentenvakbond (LSVb) reported.

State of play: The coalition agreement between VVD, CDA, and D66 includes plans to cap student loan interest rates at a maximum of 2.5 percent.

What is next: Education executive agency DUO will announce the student loan interest rate for 2027 on Wednesday, with the current rate standing at 2.33 percent.

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