Study loan interest drops to 0 pct. next year
For the first time ever the interest rate on study loans is dropping to 0 percent next year, a spokesperson for education executive agency DUO confirmed to NU.nl.
Students who finish their studies this year will not have to pay interest on their study loans for the next five years. The 0 percent interest rate also applies to former students who are starting a new fixed interest period of five years in 2017.
The interest rate is based on the performance of other public bonds issued by the Dutch government. As a result of the European Central Bank policy, these bonds' performance is very low. Students are benefited by these favorable conditions. The interest rate on study loans for this year was already at a historically low 0.1 percent.