This month, DUO will inform students of the new interest rate for 2026. Based on interest trends over the past year, the rate is expected to be around 2.3 percent, down from the current 2.57 percent.
For years, the interest rate was set at zero percent – borrowing was free. But that didn’t last. In 2023, the rate rose to 0.46 percent, and a year later it jumped to 2.56 percent. That caused outrage among students who had believed borrowing was free. A year later, it went up another hundredth to 2.57 percent.
There have been years with much higher student loan interest rates. In 2008, for example, the rate exceeded four percent. In the 1990s, borrowing was even more expensive, with rates between six and ten percent. In 1992, students paid more than 11 percent.
The official calculation for next year’s rate has not yet been released and may vary slightly. The Ministry bases the rate on the interest the government itself pays on government bonds with a maturity between 4.5 and 5.5 years.
During studies
Interest on student loans already starts accruing during your studies. To illustrate: at a rate of 2.57 percent, a loan of 10,000 euros grows by 257 euros in one year.
After graduation, students receive a two-year grace period before they start repaying, which begins in January. They have 35 years to repay their debt, with the option to pause repayments for up to five years. Any remaining debt after 35 years is written off.
The total amount of interest can add up significantly. For example, if you repay a debt of 10,000 euros over 35 years at an interest rate of 2.57 percent, you’ll end up paying nearly 5,900 euros in interest.
“The rate cut is nowhere near enough”, says Sarah Evink, chair of the Dutch National Student Association. “It’s especially students from less well-off backgrounds who have to borrow heavily. Interest rates create major inequality between students who get financial support from their parents and those who don’t.”
DUO has published an online calculator and improved its information about interest rates. For those already repaying, the rate is fixed for five years. So if you started repaying in 2023, your interest rate is still 0.46 percent and will remain so until January 2028.
Legal case
Some outraged students considered taking DUO to court over the 2023 rate hike. They felt DUO had failed to provide proper information. However, nothing has been heard about that case since. Recently, in an individual case, a judge ruled that the government is allowed to adjust the interest rate in accordance with established rules.
This article only refers to the system in which loans are repaid over 35 years. Under the old student finance system, former students had to repay within fifteen years. The interest rate was calculated differently in that system. Some former students are still subject to that old system.
