When the loan scheme started in 2015, it was promised that students would be able to borrow for free. However, this is no longer the case this year. From January 1, the interest will be 0.46% for HBO or WO students and 1.78% for MBO students. The Ministry of Education, Culture and Science (OCW) determines the interest rate each year. This amount is tied to the interest the government pays on government bonds. As a result, the economic situation – such as high inflation at the moment – affects the interest rate on student loans.
‘borrow for free’
In all provinces, the majority of those interviewed are in favor of the abolition of interest rates. The survey was conducted between 25 and 31 January and was completed by a representative group of almost 5,000 Dutch people. In the province of Groningen, with many students in the university city of Groningen, this group is the largest at 70%. Followed by Overijssel, Utrecht and Flevoland. Zeeland and Drenthe are the least in favor of abolition, although the majority believe that the interest rate measure should also be scrapped.
Young adults in particular are in favor of the abolition: almost eight out of ten young people between 18 and 34 want to go back to ‘borrowing for free’. Policy preference also has a big influence on how people think about student loan interest rates. Voters of left-wing parties are overwhelmingly in favor of abolition: around three-quarters of people who voted for SP, GroenLinks or PvdA in the last parliamentary elections are in favour. This group is considerably smaller among voters of the ChristenUnie and the CDA (both 54%) and the VVD (48%).