Student finance permanently overhauled

Students have resisted it for years, but the concept of student grants has finally been overhauled. From 1 September 2015, this financing will no longer be classified as a gift, but as a real loan and that has its consequences.

Students can apply for a voluntary loan from 1 September
Students can apply for a voluntary loan from 1 September

One of the most remarkable novelties that were introduced on September 1 of this year concerns student grants. As many as 150,000 new bachelor and master students cannot count on the basic grant this year. Instead, one can apply for a voluntary loan.

This loan makes it possible for students to borrow a maximum of 854.13 US dollars per month. In addition, it is also possible to borrow an additional 162.58 US dollar tuition fees if necessary. This loan must be paid off within a maximum period of 35 years. This period has therefore been extended considerably, because the previous student grant only had a term of 15 years.

Additional grant for insolvent parents
The disappearance of the basic grant is not such a big problem for students of wealthy parents, they can manage perfectly with the new student loan , but what kind of children of insolvent parents? The new regulations state that students of parents who collectively earn no more than US $ 46,000 per year are still entitled to an additional grant. This additional grant is also going up, from 278 to 378 US dollars per month. For this type of grant, it is still valid as a gift when the student in question obtains his or her diploma.

1 billion US dollars for better education
The fact that the classic student loan no longer falls under the category of gift, but under that of a loan, ensures that the government will be left with a considerable amount of money. It is expected to just go to 1 billion US dollar which will be invested back in Dutch education. For example, they would provide more adapted guidance for students, additional teachers would be hired and more teaching hours would be added. In addition, there is also an extra reward for scientists who choose to teach.

Published September 9, 2015 at 11:10 am by the editors .

Also read