Dutch Government Is Working on an Extra 2,000 Euro Payment for Students Hit by Loan System
Around 760,000 students who studied without a basic grant between 2015 and 2023 could receive a second round of compensation on top of the 3,740 euros they already received, with the cabinet expected to discuss the plan this Friday.
The Dutch government is preparing an additional payment of around 2,000 euros for students who were affected by the loan system that replaced the basic student grant between 2015 and 2023. The cabinet is set to discuss the proposal on Friday, and if approved, the money would be paid out in 2027.
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What the loan system was and why it matters
Until 2015, Dutch students in higher education received a basic grant, known as the basisbeurs, which did not need to be repaid. In 2015, the government scrapped it and replaced it with a loan system, meaning students had to borrow money for their living costs and pay it back with interest after graduating. The idea was to make the education system more efficient and reinvest savings into university quality.
The system did not deliver what politicians had hoped for. After eight years, the basic grant was brought back in 2023. Around 760,000 students had studied during the years in between, without access to the grant their predecessors and successors received. This group became known as the pechgeneratie, or unlucky generation.
What compensation has been paid so far
When the basic grant was restored, around one billion euros was set aside to compensate affected students. The earlier cabinet considered this too limited, and the current coalition committed a further 1.4 billion euros in its coalition agreement for an additional payment.
The existing compensation works out to around 34 euros per month studied without a basic grant, up to a maximum of four years. A student who completed a four-year bachelor's degree received around 1,640 euros. Students from the first four years of the loan system also received an additional voucher payment of just over 2,000 euros, which was later converted into a direct cash payment rather than education credit.
What the new payment involves
The additional compensation being discussed this Friday is expected to amount to around 2,000 euros per eligible student, on top of the 3,740 euros already received. The exact amount will depend on how long each student studied under the loan system.
The supplementary payment is expected to be granted from April 2027. Both the House of Representatives and the Senate still need to approve the legislation before it can be paid out.
The proposal works out to approximately 40 euros per month studied. A large part of the House of Representatives had pushed for a second round of compensation, arguing the original payment was too modest.
Who qualifies
To be eligible for the existing compensation, students needed to have studied between September 2015 and September 2023, had the right to a performance-based grant during that period, and must have completed their degree within ten years. The new legislation also extends the eligible group to include students who were unable to complete their degree due to exceptional circumstances.
Students who already received the first compensation automatically receive updates from DUO, the national student finance agency. Those who did not receive student finance at the time need to apply themselves through the DUO website.
