{"id":181226,"date":"2025-09-02T11:50:47","date_gmt":"2025-09-02T09:50:47","guid":{"rendered":"https:\/\/www.erasmusmagazine.nl\/en\/?p=181226"},"modified":"2025-12-19T11:27:54","modified_gmt":"2025-12-19T10:27:54","slug":"rente-op-studieschulden-mag-omhoog-vindt-rechter","status":"publish","type":"post","link":"https:\/\/www.erasmusmagazine.nl\/en\/2025\/09\/02\/rente-op-studieschulden-mag-omhoog-vindt-rechter\/","title":{"rendered":"Interest on student loans may rise, rules judge"},"content":{"rendered":"

Because of a rising interest rate on student loans, a former student brought a lawsuit: the government had not properly informed him. But he lost his case.<\/p>\n

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For six years, the interest on student loans was zero per cent. What you borrowed had to be repaid and not a penny more. That changed in 2023 (0.46 per cent) and the year after the interest<\/a> rose to around 2.5 per cent.<\/p>\n

Many students felt caught off guard: they had no idea borrowing could become more expensive. But despite student demonstrations<\/a> and political outrage<\/a>, nothing changed: the interest went up.<\/p>\n

Trust<\/h2>

Not fair, a former student thought, and he brought a lawsuit against the Ministry of Education. Student finance agency DUO had not provided adequate information, he argued. That harms the principle of legitimate expectations.<\/p>\n

In a short ruling<\/a> from June, made public this week, the judge rejected this argument. The law sets out how the interest on student loans is determined: it is linked to the interest the State itself pays on loans in the capital market. The interest can therefore rise.<\/p>\n

The judge also noted that DUO has a calculator on its website that lets you see the effects of rising interest rates. At the current rate, and with a debt of 20,000 euros, you will pay almost 11,800 euros in interest over 35 years.<\/p>\n

Warning<\/h2>

Shouldn\u2019t there have been a warning like \u2018Be aware, borrowing money costs money\u2019, as is required for other loans? No, the judge found, because a student loan from DUO does not fall under the Financial Supervision Act.<\/p>\n

That is also why student loans are not registered with the Credit Registration Office. Unlike a loan for, for example, a car or a house, flexible conditions apply to these loans. Those who do not earn enough have to repay less, and after 35 years the remainder is written off.<\/p>\n

Earlier, dozens of students threatened to bring a collective lawsuit. Nothing more has been heard of it.<\/p>\n

The interest on student loans was once much higher<\/a>, namely 11 per cent. For those repaying, DUO fixes the interest rates for five years. So someone who, for example, began repaying in 2022 is still at zero per cent.<\/p>\n

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