City launches initiative for students with problematic debts

With a new programme, the Rotterdam municipality aims to help young people struggling with problematic debts. Mina Morkoç, a municipal councillor for GroenLinks and Law student, is one of the driving forces behind the initiative: “When you’re young, having a sense of future prospects is crucial.”

The initiative is aimed at Rotterdam residents aged 18 to 26 with problematic debts and limited repayment capacity, helping them continue their studies or achieve other key life goals. In addition to debt cancellation or restructuring, the programme offers support such as budget coaching. “Students often think: ‘I can always borrow more.’ But they don’t always realise that they’ll have to pay it back later”, says Morkoç. The project aims to raise awareness about the consequences of debt and to break the stigma surrounding it.

Energy allowance

The programme was prompted by the exclusion of students from the energy allowance. In 2022, Rotterdam received 3.2 million euros to support students facing rising energy costs. This was intended to be distributed via individual special assistance. However, due to strict eligibility requirements – for example, a student loan was counted as income – more than 2 million euros went unused. Student organisations and councillors criticised the policy, arguing that the requirements were unrealistic and discouraging.

Morkoç calls this a missed opportunity and submitted a motion to ensure the funds would still be used to provide basic security for young Rotterdammers: “That money is now finally being used for young people with financial difficulties, with lower thresholds and a clear focus on support.”

Debt-free future

The goal is to assist 200 to 300 young people. The selection criteria are straightforward: problematic debts and minimal repayment capacity. Two key conditions apply: participants must agree to financial coaching and continue their studies. These requirements are crucial for successfully completing the programme, which focuses on both personal development and overall progress.

To achieve this, a budget of 2 million euros will be allocated, sourced from the unused portion of the 3.2 million euros originally earmarked for energy compensation. The initiative supports young people, primarily students, in achieving a debt-free future within 18 months while continuing their education. For those who don’t quite meet the criteria, alternative forms of assistance will be explored. “The idea is that no one is left behind”, Morkoç explains.

For now, it’s a temporary project. However, Morkoç hopes that helping young Rotterdammers with debts will become a permanent part of municipal policy.

The first success has already been achieved: the initial participants have started. The municipality will report annually on the programme’s progress. For Morkoç, the goal is clear: “This is an opportunity to truly make a difference for vulnerable young people in Rotterdam.”