You may have received it in the media. The student loan system has been drastically adjusted. A scholarship was a performance grant in recent years. If a diploma was obtained within 5 to 10 years, the basic grant was completely canceled. This is adjusted in the new system. The scholarship is therefore no longer a performance-related grant. The government has therefore opted for a new name. The study advance. This is going to introduce students to borrow money. The basic grant will no longer be a performance grant.
Does this make studying more expensive for everyone?
When students borrow money to measure, this means that studying becomes more expensive for them. This is also apparent from the figures that the government shows. According to the government, lending money to students will generate savings of 800 million to 1 billion. This money naturally comes directly from the students. In addition, the (extremely low) interest rate for the student loans is also substantially increased from 0.81% to 1%
No more free money for the study?
Anyway! It is still possible to get a supplementary grant for the study. If the student’s parents earn less than € 46,000 gross per year, this is not considered a loan. Students with parents with an income above this limit are expected to be able to contribute to the study. If these students still want an additional grant, the student will have to borrow the money.
What does this mean for the financial position?
Taking into account that the reimbursement period for the study is extended from a maximum of 15 years to a maximum of 35 years, this has considerable consequences. The higher a consumer’s expenses, the less he can borrow. This will therefore also have consequences for the borrowing capacity for “normal” loans and for the mortgage. Releasing a student loan prematurely with another loan is generally not convenient. The new loan will most likely have a higher interest rate. You are therefore often more expensive. Repaying the loan with your own resources is of course completely fine. Although you could take into account that you can make a higher return with your money if you have to pay interest on the loan.