Lower House opposes DUO debt statements

The Lower House doesn’t want banks to have access to the student debt information of potential home buyers when providing them with a mortgage loan. A majority subsequently voted against introducing a proposal in which the Education Executive Agency DUO would issue a statement of debt to banks.

Last month, minister of the Interior Ollongren argued that banks need to be aware of any student debts in order to prevent people from ending up with financial problems due to taking out a mortgage beyond their means. The idea was that mortgage providers could ask their customers for an official statement from DUO showing whether they have a student loan debt and how much is owed. Former students would have to personally request this information from DUO. They could choose not to do this, but they would then run the risk of being refused a mortgage loan.

But the Lower House dismissed the proposal with almost all parties – except the SGP – voting in favour of a D66 motion to abandon the idea of introducing the DUO debt statement. What’s more, the proposal is at odds with the promise made by Bussemaker, who was the minister when the student loan system was introduced: thanks to favourable repayment conditions and low interest rates, student loan debts wouldn’t have to be registered with the Credit Registration Office (BKR). The BKR provides banks with information on a customer’s consumer credit. It was believed this would fuel unnecessary anxiety when taking out loans.