Dutch student debt drops to 28 billion euros as basic grant reduces borrowing

First decline in Dutch student debt

Total student debt in the Netherlands stood at 28 billion euros at the start of 2026, falling by 800 million euros compared to 28.8 billion euros recorded a year earlier, according to provisional figures from Statistics Netherlands (CBS). The total number of people carrying student debt fell for the third consecutive year to over 1.5 million, a reduction of 60,000 individuals from 2025. Approximately 400,000 current students held loans at the start of 2026, down from 610,000 in 2023, while over 1.1 million former students were repaying debt. Peter Hein van Mulligen, chief economist at CBS, linked the reduction directly to the end of the previous student financing model.

It has probably everything to do with the loan system no longer being in place for a few years. You already saw total debt increasing less and less, and now it has actually decreased.

Basic grant reintroduction and monthly payments

The decline in borrowing follows the return of the basic student grant in the 2023–2024 academic year under the fourth Rutte cabinet, replacing the mandatory loan framework in effect between September 2015 and 2023. Under the restored scheme, students receive non-repayable grants based on living arrangements and parental income. In 2026, university and higher vocational students receive 130 euros per month if living with parents and 325 euros if living independently, while vocational (mbo) students receive 107 euros and 350 euros respectively.

Van Mulligen noted that while higher education remains costly, state allowances have reduced the necessity for private borrowing among newer cohorts.

It is not that studying is now dirt cheap, but the basic grant does help.

Growth in large debt balances

Despite the reduction in the total debt pool, the overall average balance per debtor reached 18,300 euros in 2026, an increase of nearly 6,000 euros compared to 2015 when the loan system was introduced. Current students owe an average of 15,600 euros, whereas former students owe an average of 19,200 euros. Nearly half of all borrowers hold balances under 10,000 euros, but high individual balances continue to grow among older cohorts.

In 2026, 144,500 people held balances exceeding 50,000 euros, double the number recorded in 2020. Almost 5,000 individuals owed 100,000 euros or more. Education executive agency DUO reported that the highest balances are concentrated among students who entered university between 2015 and 2018 during early loan system years, when near-zero interest rates led many to borrow heavily without anticipating subsequent policy shifts.

Repayment patterns and interest rate pressure

Former students carrying debt reached over 1.1 million in 2026, an increase of 6,000 people from 2025, compared to an increase of 28,000 between 2024 and 2025. DUO reported that borrowers paid three times their mandatory repayment obligations on average during 2026. This behavior corresponds with rising interest rates, which are tied to government bond yields and projected to reach 2.68% next year, the highest level in 17 years. Mortgage lending rules established in 2024 also evaluate actual monthly repayment commitments when calculating borrowing capacity. For students who studied under the loan system without access to the basic grant, the Dutch parliament increased transitional compensation from 1,400 euros to 2,100 euros, with DUO scheduled to distribute payments starting in April 2027.