Dutch education minister says 2.5 per cent student loan interest cap cannot be funded

23 October 2026

Education Minister Rianne Letschert told the Dutch parliament that the coalition promise to cap interest on student loans at 2.5 per cent cannot be met with the money set aside. The coalition agreement of D66, VVD and CDA allocated 40 million euros a year for the cap. Letschert said an additional 120 million euros a year would be needed to bring the rate back down to 2.5 per cent. Long-term interest rates to which student loan rates are linked have risen from 2.7 per cent to 3.3 per cent. She offered alternatives such as a fixed reduction of about 0.2 percentage points or a floating cap. The student unions LSVb and ISO objected to the change in plan.