Will student loan become more expensive?

Studying is likely to become more expensive in the coming years.

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For example, we read in the coalition agreement that the parties have decided to align the student loan with the 10-year interest rate.

That is not a good message for those who borrow money for their studies . They will pay extra interest for this in the future. Below you can read more about this coalition agreement.

Studying more expensive? That’s how it is:

Studying is expensive. But the government also incurs costs for providing student loans. After all, they borrow money for that. They get the money from government bonds. And just as you have to pay interest on the student loan, the government also has to pay interest on the amount they borrow. And they pass on this interest to all students. With long-term loans (so the longer the interest rate is fixed) the interest rate is higher.

5 and 10-year interest

The Dutch government now uses the 5-year interest rate. This interest is therefore fixed for 5 years at a negative interest rate of -0.23%. Students who borrow money from the government and want to do 10 years to redeem it, who borrow at an interest rate of (at this time) 0.58%. Because after all, the longer the interest rate is fixed, the higher the interest rate. In practice, it means that a student loan with a term of 10 years, costs about 85 euros extra per year.

The new loan standard does not apply to the students of today

There is also good news for students. Because the new interest rate for loans of 10 years, which only applies to people who will study in the future. If you are currently studying, you do not have to worry.

Ps: Before the new interest rate applies to new students, there is still a need to change the law. Definitively it is therefore not in the least … Read also how it is with student loan and buying a house .