Wednesday 26 February 2020

Student debts rise; 15,000 owe over €50,000

delft university students Przemyslaw PawelczakOver 15,000 former students have built up debts of at least €50,000, according to calculations by RTL news.

The broadcaster bases its claims on figures from the student loan service Duo, and says the total is set to increase now grants have been abolished for all but the poorest students.

The government’s macro-economic think-tank CPB has already estimated the average debt will rise by €6,000 to €9,000 because grants have been scrapped.

In total, over 590,000 people in the Netherlands are currently in debt as a result of being a student. The total in outstanding loans is €7.6bn.

Luxury

Family spending institute Nibud says it is concerned that students are borrowing money for ‘nice things’ as well as to fund their education.

Research by Nibud last year showed one in three students borrowed more than they need to save for later, and one in eight in order to buy luxury products. Students can currently borrow up to €1,025 a month, which has to be repaid over 35 years.

Last year, broadcaster Nos said one in five graduates with a student debt is behind with repayments. Of these, two-thirds get a visit from a bailiff at some point.

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