See more of Dutch Brief in your Google search results
Student debt in the Netherlands has declined for the first time, indicating that the reinstated basic student grant is beginning to have an impact. However, this overall decrease conceals a rise in large individual debts.
The first-ever fall
Statistics Netherlands (CBS) reports that students and graduates owed 28 billion euros at the start of 2026, 800 million euros less than the previous year. This marks the first annual decrease in total student debt.
The number of individuals with student debt is also decreasing, totalling approximately 1.5 million at the start of the year, 60,000 fewer than the year before. This is the third consecutive annual decline. The number of current students with loans has dropped significantly to about 400,000, a decrease of 210,000 since 2023.
Why it is falling
This change is due to policy adjustments. “It probably has everything to do with the fact that the loan system has been gone for a few years,” said CBS chief economist Peter Hein van Mulligen. From 2015 to 2023, the loan system (leenstelsel) required students to borrow for living expenses, as no basic grant was provided. In the 2023-2024 academic year, the government reinstated the basic grant (basisbeurs) for higher education, allowing new students to receive non-repayable study finance and reducing the need to borrow. “It is not that studying is now dirt cheap,” Van Mulligen noted, “but the basic grant does help.”
SPONSORED
You’re overpaying your accountant. And they still don’t call you back.
Neno gives you a dedicated bookkeeper, automated admin, real-time financial insights and a free business bank account. Everything your business needs, in one place.
No chasing. No surprises. No unnecessary costs.
High debts are rising
The overall decline conceals a growing issue among those with the highest debts. While fewer people owe money, the number with very large debts is increasing: approximately 145,000 individuals now owe 50,000 euros or more, double the figure from six years ago, and nearly 5,000 owe at least 100,000 euros. Conversely, almost half of all borrowers owe less than 10,000 euros.
Average student debt continues to rise, increasing by 5,900 euros since the loan system was introduced, reaching 18,300 euros. Current students owe an average of 15,600 euros, 1,000 less than last year, while former students owe 19,200 euros on average, and this figure is still increasing. These high debts are primarily a result of the loan-system years, with affected students often referred to as the “unlucky generation” (pechgeneratie) for missing out on the grant.
Paying it back faster
Another notable trend is that, according to the student finance agency DUO, borrowers are increasingly repaying more than the minimum required. In 2026, repayments were about three times the mandatory amount. This is likely due to higher student loan interest rates, which encourage faster repayment. Additionally, since 2024, banks primarily consider monthly student loan repayments when assessing mortgage applications, providing further motivation for former students to reduce their debt. For a generation affected by student debt in many aspects of life, this first national decline represents a significant milestone.