Students consciously borrow more money than necessary

One third of the students who choose to apply for a student loan deliberately borrow too much money. This is evident from a survey conducted by the National Institute for Budget Information.

Students borrow extra at low interest for holidays and to fill their savings account
Students borrow extra at low interest for holidays and to fill their savings account

The survey conducted by Nibud was conducted among 2,723 Dutch students. They indicate that they can take out a loan from the government very cheaply. DUO, the body responsible for paying out the student loans, charges an interest of barely 0.12 percent. This is striking, because if students borrowed the money and placed it in a savings account, they would immediately receive an attractive profit.

Three out of ten borrow a maximum amount
The research conducted by Nibud has indicated that students regard favorable loan conditions as the main reason for taking out a student loan. A second reason lies in the fact that their parents recommend it. As many as three in ten students surveyed indicated that they would borrow the maximum amount. In practice, this can run up to just 1000 US dollars per month.

An extra striking detail is that one in ten students has indicated that they save the money to be able to buy a house after their studies. This is of course very attractive financially, because the interest on a student loan is considerably lower than that on a mortgage loan. In addition, a student loan only counts to a limited extent as debt when taking out a mortgage.

More applications from next academic year
Nibud expects that there will probably be more applications for a student loan for the coming academic year. The so-called basic grant will expire from 1 September. In order to absorb this financial setback, more students will be forced to make use of the opportunities that the student loan offers. Just like that, 58 percent of the students questioned has already indicated that they will solve the loss of the basic grant by applying for a student loan.

No check on student loans
Following the results of the survey, the spokesperson for Minister Jet Bussemaker has indicated that taking out a student loan is still intended to help pay for the costs of the study and the living expenses of the student. However, DUO, which provides the loans, has indicated that it will not check whether the students actually need the loan amount or are simply saving it for later.

Published July 7, 2015 at 9:32 am by the editorial team .

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