Considerable increase student loans

18/01/2011 15:00

Over the period 1997-2009, the share of student loans in the system student loans and grants has steadily grown. The total amount of public spending on student loans and grants has also increased over this period.

Half are loans

In 2009, half of total public spending on the student loans and grants system were loans, a far higher proportion than in 1997, when 20 percent were loans and 80 percent were grants. Adjusted for inflation, the total amount borrowed by students from the government grew by 1.1 billion euro in this period.

One of the reasons for the increase is that the number of students has grown, but the average amount students borrow has also risen. This is partly due to the introduction of the performance-related student grant 1996/’97. If it takes the student longer to graduate than is officially permitted, the loan is not converted into a grant. The performance-related student grant regime is gradually introduced and the number of students to whom it applies is growing.

Public spending on student grants and loans (adjusted for inflation)

Public spending on student grants and loans (adjusted for inflation)

Fewer grants

Total government spending on student grants in 2009 was 200 million down on 1997. This is partly caused by the shift from grants to loans and partly by the introduction of free school books, which led to lower compensation of costs for pupils in secondary education in 2009.

Government spending on student grants and loans higher

The Dutch government spent nearly 3.7 billion euro on student grants and loans in 2009, an increase by 1.7 billion euro relative to 1997. Government spending on student grants and loans increased by 0.9 billion euro.

Public spending on student grants and loans (adjusted for inflation)

Public spending on student grants and loans (adjusted for inflation)

Hugo Elbers