Interest on student debt to fall, DUO confirms

The interest on student loans will drop next year from 2.57 to 2.33 percent, following three years of increases. This was announced by the Education Executive Agency (DUO). “It’s like a slot machine, with your future at stake”, says student organisation ISO.

Student finance agency DUO has published the new interest rate for student loans for 2026. At 2.33 percent, the figure matches the estimate made by the Hoger Onderwijs Persbureau two weeks ago.

A new student loan interest rate is set every year. For many years it stood at zero percent, meaning students could borrow virtually ‘for free’. That changed in 2023, when the rate suddenly rose to 0.46 percent. A year later, it jumped to over 2.5 percent. It has now slightly decreased again, to 2.33 percent.

Slot machine

“The interest on student loans is like a slot machine, with your future at stake”, says Sarah Evink, chair of the Dutch National Students’ Association (ISO). “There is constant uncertainty about the ever-changing cost of borrowing.”

Evink also points out that even with an interest rate of 2.33 percent, ‘(former) students still pay more than half their student debt in interest’. Anyone repaying a debt of 10,000 euros over 35 years ends up paying an additional 5,000 euros in interest.

Politics

Several political parties are addressing the issue in their new election manifestos. D66, DENK and Volt want to cap interest on student loans at 2.5 percent. The so-called ‘unlucky generation’, who were not entitled to a basic grant, should pay no interest at all, they argue. The Partij voor de Dieren and the Socialist Party want interest on all student loans to be set at zero.