Do you have a performance-related grant or a loan? If so, then that will be subject to interest. In recent years, the interest rate has remained at 0%. With effect from 1 January 2023, the interest charged to all students will increase.
What is the interest rate?
The interest rate depends on the repayment rules that apply to you. Whether you are required to pay back, depends on whether you obtain your diploma and take out a loan or not. In Mijn DUO, under ‘Mijn Schulden’, you can check which repayment rules apply to you.
SF15 repayment rules:
- You have have 15 years to repay your loan.
- In 2023, the interest for these loans is 1.78% per year.
SF35 repayment rules:
- You have 35 years to repay your loan.
- In 2023, the interest for these loans is 0.46% per year.
I am no longer studying
Are you already repaying your student debt? If so, the interest rate will increase only if your new fixed-rate period starts in 2023. If you last received student finance in 2022, the new percentage applies from 2023 for a period of 5 years.
You received a notice about your interest rate and monthly payments last November. Check the options to pay less or pay more.
The interest rate depends on the repayment rules, because repayment periods differ. Under the SF15 repayment rules, a student debt must be repaid within 15 years. Under the SF35 repayment rules, this period is 35 years.
The interest is calculated as follows:
- Under the SF15 repayment rules, the interest rate depends on the average yield of 3-year to 5-year bonds in September. In other words, the yield for that month alone.
- Under the SF35 repayment rules, the interest rate depends on the average yield of 5-year bonds from the start of October to the end of September the following year. In other words, a period of 12 months.
The average interest rate over a period of 12 months may differ from the interest rate in September alone. Hence the percentages may differ.
Each year, the Ministry of Education, Culture and Science (OCW) sets the interest rate charged on student loans. That interest rate is linked to the interest rate that the government pays for loans on the capital market. These are referred to as government bonds. In recent years, the interest rate on government bonds has been very low. This has been reflected by the interest rate on student loans. Interest rates are now rising again, due to inflation. As a result, the state now has to pay more for its loans. This, in turn, has pushed up the interest on student loans.
In 2023 you will be charged 1,78% or 0,46% interest. This is the percentage per year. From this you can derive the tax rate per month. The tax rate per month is lower than the tax rate per year.
Example 0.46%
Interest rate per year: 0.46%
Interest rate per month = 0.00038253 (approximately)
Total student debt: € 10,000
Interest per year: (€ 10,000 x 0.0046 =) €46
Interest per month: (€ 10,000 x 0.00038253 =) €3.83
Example 1.78%
Interest rate per year: 1.78%
Interest rate per month = 0.00147137 (approximately)
Total student debt: € 10,000
Interest per year: (€ 10,000 x 0.0178 =) € 178
Interest per month: (€ 10,000 x 0.00147137 =) € 14.71
Interest added each month
The interest calculated over the current month is added on the 1st of the new month. You will then see the new amount of your debt in Mijn DUO. If you make a payment, we take the date of your payment into account when calculating the interest.
How interest works for students
You start to accrue student debt from your 1st month of a performance-related grant or loan. That debt is then subject to interest. The government sets the applicable percentage of interest. This is referred to as the ‘interest rate’. While you are pursuing your studies, the interest rate is always fixed for 1 year. This means it can be higher one year and lower the next, or it may stay the same.
The interest is added every month. The interest is calculated based on your total student debt at that time. That is the amount of your debt plus any interest that has already accrued. So you are paying interest on interest. This is referred to as ‘compound interest’.
If you obtain a diploma, your performance-related grant is converted into a gift, including any interest.
| Year | Interest rate (%) |
|---|---|
| 2022 | 0.00 |
| 2021 | 0.00 |
| 2020 | 0.00 |
| 2019 | 0.00 |
| 2018 | 0.00 |
| 2017 | 0.00 |
| 2016 | 0.01 |
| 2015 | 0.12 |
| 2014 | 0.81 |
| 2013 | 0.60 |
| 2012 | 1.39 |
| 2011 | 1.50 |
| 2010 | 2.39 |
| 2009 | 3.58 |
| 2008 | 4.17 |
| 2007 | 3.70 |
| 2006 | 2.74 |
How interest works when repaying a student debt
Have you completed your studies and now need to repay your student debt? If so, the interest rate is always fixed for 5 years, from the start of your preliminary phase. This is referred to as the ‘fixed-rate period’. You will then pay the same interest rate for 5 years. The interest rate will subsequently be reset, once again for 5 years. Check Mijn DUO for details of your current interest rate and its period of validity.
The interest on your total residual debt is calculated month by month. That is the amount of your debt plus any interest that has already accrued. So you are paying interest on interest. This is referred to as ‘compound interest’.
Examples fixed-rate period
Example 1
Saskia graduated from her secondary vocational education (MBO) programme in 2017. She has taken out a loan, so she has a student debt. As a result, her preliminary phase commenced with effect from 2018.
- The interest rate for 2018 was 0.00%. This rate was fixed for a period of 5 years. This means that, from the start of January 2018 to the end of December 2022, Saskia will pay no interest on her student debt.
- In January 2023, Saskia will commence a new fixed-rate period. At that point in time, the interest rate will be 1.78%. Thus, commencing in 2023, Saskia will pay 1.78% interest on her debt. Once again, this will apply for a period of 5 years, up to the end of December 2027.
- In 2028, Saskia will commence the next fixed-rate period. For the following 5 years she will be subject to the 2028 interest rate.
Example 2
Anton discontinued his studies in 2014, without obtaining a diploma. He has a student debt. As a result, his preliminary phase commenced with effect from 2015.
- The interest rate for 2015 was 0.12%. This rate was fixed for a period of 5 years. This means that, from the start of January 2015 to the end of December 2019, Anton paid 0.12% interest on his student debt.
- In January 2020, Anton commenced a new fixed-rate period. At that point in time, the interest rate was 0.00%. Thus, since 2020, Anton has paid no interest on his debt. Once again, this applies for a period of 5 years, up to the end of December 2024.
- In 2025, Anton will commence the next fixed-rate period. For the following 5 years he will be subject to the 2025 interest rate.
Every year in November you will receive a message about your interest rate and the amount of your monthly repayments.
- What if the amount of your monthly repayments increases and you are unable to pay? You could, perhaps, be granted a reduced monthly repayment, or you could temporarily repay less or nothing at all.
- You can also pay off your student debt earlier or make an extra payment. Your debt will then be lower, so you will pay less interest in total.