Overview
- The education minister has concluded the coalition’s reserved €40 million per year cannot fund a maximum 2.5% interest rate on student loans and told parliament the promise is not affordable under current conditions.
- Higher global borrowing costs have raised the projected long‑term interest on past student loans from about 2.7% to roughly 3.3%, which increases the state subsidy needed to hold rates at 2.5%.
- Official estimates reported in the press put the annual extra cost of restoring a 2.5% cap at roughly €120–€160 million, far above the current reservation.
- Letschert has floated narrower options, including a fixed discount of about 0.2 percentage point or a ‘moving ceiling,’ each of which trades cost, clarity and administrative complexity for partial relief.
- Student groups LSVb and ISO say they are angry and feel the coalition has broken a promise, and the minister will face a Tweede Kamer budget debate next week where parties must propose how to respond.