# Cabinet cannot fund promised 2.5% student loan interest cap

> Education minister Rianne Letschert says the cabinet cannot pay for the coalition's interest ceiling, while the rate for most students rises to 2.7% next year.

Economy · published 2026-10-25 06:18 · https://nlnow.nl/a/cabinet-cannot-fund-promised-2-5-student-loan-interest-cap/

Education minister Rianne Letschert announced on Thursday that the cabinet cannot pay for a 2.5% cap on interest on student debts. At the start of the Jetten cabinet, D66, VVD and CDA agreed in the coalition agreement that (former) students would pay at most 2.5% on their loan.

The student loan agency Duo has announced that the rate for most students will be 2.7% next year, the first time it has exceeded 2.5%. It is expected to rise to 3.3% or higher in the coming years. Until 2023, the rate was zero for a long time.

The cabinet had reserved €40m for the cap. Letschert is considering alternatives, such as a fixed interest discount of about 0.2 percentage points.

Figures from Statistics Netherlands (CBS) show total student debt fell for the first time, while the number of people owing €50,000 or more rose to 145,000.

The student union LSVb is furious. "Students are kicked into life with a very heavy backpack this way," it said, calling the cap "the only bright spot". Student body ISO said: "The coalition made a promise it cannot now keep. Students are once again the victims of empty promises."

Letschert will debate her budget with MPs in the Tweede Kamer next week.

## Background

- **DUO (Dienst Uitvoering Onderwijs)**: The government agency that handles student finance, including student loans and their repayment.
- **Tweede Kamer**: The House of Representatives, the lower and more powerful house of the Dutch parliament. Its 150 members are elected directly; it can amend bills and holds the cabinet to account.
- **LSVb (Landelijke Studenten Vakbond)**: The National Students' Union is a Dutch organisation that represents the interests of students at the national level. It campaigns on student issues such as student finance, grants, loans and tuition fees. Its statements often reach the public because it speaks for students in debates with the government and parliament.

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