Borrowing money for students has never been so cheap

Never before has student borrowing money been so cheap. This year, students can borrow at a very low interest rate. Roughly 170,000 students borrow from the government at very cheap interest rates.

In principle, students must repay a loan within 15 years
In principle, students must repay a loan within 15 years

The interest on a student loan is linked to the interest that the Netherlands pays on the capital market. This allows students to borrow money at a cheap interest rate. The interest rate this year is 0.6 percent. In 2008 the rate was still 4.17 percent and in 1993 even 9.49 percent. Compared to commercial interest rates at major banks, where interest rates are slightly above 8 percent, the percentage that students borrow from the government is significantly lower at 0.6 percent.

As of September this year, HBO and university students with a performance grant can borrow a maximum of 442 US dollars per month on top of the basic grant. Students who are no longer entitled to a performance-related grant but are still a full-time student can borrow a maximum of 873 US dollars per month for three years. On average, students borrow less than the maximum. In December 2012, the average loan amount for students with a basic grant was 376 US dollars per month. Students with a full loan had an average loan amount of 614 US dollars.

Published June 24, 2013 at 2:22 PM by the editorial team .

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