In 2007, Dutch students altogether borrowed 2.7 billion euro – an increase by 19 percent relative to the previous year – from the institution responsible for the issue of study loans and grants (IBG). Students in higher education accounted for the largest amount: over 2.2 billion euro.
There are two types of study loans: firstly, the performance-related loan, i.e. the student performs well and the debt is cancelled after graduation. The other type of study loan has to be paid off at all times. The average annual amount borrowed by Dutch students is rising. The recently introduced tuition fee credit enabling students to borrow an extra amount to pay the tuition fee hardly contributed to the increase.
Last year, nearly 0.8 billion euro of performance-related study loans were converted into grants. Students paid off over 0.2 billion euro. The total outstanding student loan increased by more than 1.7 billion euro to approximately 11 billion euro.