Student grant cuts next month may come as a surprise to many: Budget institute

Some students living away from home may have to deal with an unexpected financial setback at the end of this month. The temporary arrangement where those students receive an extra 164.30 euros per month ended on September 1. It was clear before the summer holidays that many students were not aware of this, according to a study published on Friday by the National Institute for Family Finance Information (Nibud).

For the annual survey, Nibud interviewed over 1,600 students at research or applied sciences universities, and over 1,600 higher vocational students. When they filled in the questionnaire in May, one in three university students were not aware that the supplement to the basic study grant was only temporary.

The students affected by the change could be "faced with unpleasant surprises next year," the researchers wrote. It is impossible to say whether much has changed since then, but the topic was not featured in the news this summer.

They also indicated in the report that the reintroduction of the basic study stipend, which returned last year, has had a positive effect on the financial situation of students. "Their income has increased and they are financially dependent on their parents less often."

The amount of money they borrowed during the last academic year was also lower than during those years without the basic grant. Approximately one in four university students and 10 percent of vocational students now have a student loan that carries an interest payment.

The supplement to the basic study grant was a purchasing power measure intended to mitigate the increased costs of groceries and energy. These costs have not fallen since then, but a majority of parliamentarians in the Tweede Kamer did not want to extend it.

Among vocational students, 63 percent were not aware of the end of the extra study funding. That is not very relevant for a large part of that group, because many of them still live at home or are under 18 and therefore did not qualify for the extra stipend. For those vocational students living away from home, the scheme already ended at the start of August.

Although students have improved their financial position on average, their financial situation often remains "vulnerable" according to the Nibud. A fourth of vocational students who participated in the study even have to deal with debts and payment arrears, such as falling behind on health insurance payments or online purchases.