Netherlands students in better financial position due to basic study grant, higher wages

Students borrowed less in the past academic year. Their financial position has also improved, ABN Amro reported based on transaction data. According to the bank, both the reintroduction of the basic study grant and strong growth in hourly wages contributed to this.

The basic study grant was regularly a topic of debate since its abolition in 2015, especially for the “unlucky generation” who missed out on the grant. The basic grant was reintroduced in the 2023/24 academic year, with the main reason being to alleviate the financial stress for students.

Since the 2018/19 academic year, students have already become less dependent on student loans and have filled this gap by working more, especially during the coronavirus pandemic. For the average student in 2018/19, the student loan accounted for approximately 45 percent of their total income. This percentage gradually decreased to less than 30 percent.

The average absolute amount of student loans has also decreased. This leads to lower student debts on average and a lower amount that students have to repay.

The decrease in student loans is accompanied by an increase in income from wages. The average income from salary grew by over 5 percent each year, with a striking peak of almost 25 percent during the coronavirus academic year 2021/22.

During that academic year, lectures were mostly online, and there were fewer social activities, leaving more time for work. Many students also worked at the GGD vaccination and test sites. The hourly wages of these jobs were, on average, higher than the minimum wage.

In the past academic year, there was a significant decrease in the number of hours worked by students due to the reintroduction of the basic grant. Despite the decrease, Dutch students still historically have the highest labor participation compared to other countries in the eurozone. The decrease in hours worked also meant a slight increase in the percentage of income from student financing.