VVD, PvdA, D66 and GroenLinks abolished the basic student grant in 2015 in order to invest hundreds of millions in higher education. PvdA and GroenLinks have since rejected the system and D66 now wants amendments too.

The report by research agency ResearchNed confirms previous conclusions on the loan system: by far the majority of young people still dare to enter into higher education, even if they will indeed incur increased student debt. Only vocational students stay away more often. On balance, the researchers call the system ‘efficient’.

Progression

However, the progression from vocational to professional education does require attention, the government agrees. Minister Van Engelshoven suggests that vocational students making the jump to professional education could be given more time in their first year to decide if they are happy in their new environment. If they drop out before 1 February, they do not have to pay back their grant, but that period could possibly be extended.

Critics think it is not enough. The basic student grant must be reintroduced, in the opinion of student organisations such as the Dutch National Union of Students (LSVb) and the Dutch National Student Association (ISO). More than half of university students have student debts of more than 20,000 euros and more than half of those students owe more than 40,000 euros. Those are enormous sums, says the LSVb. The ISO points to problems for students from middle income households, who receive no additional student grant; for those families, children who are students are relatively expensive.

The report also states that students are borrowing more than they lost when the basic student grant was abolished. Not everyone takes out loans; overall 28 per cent of students have no student debt at all.

The political positions are largely known as well. Coalition party the ChristenUnie immediately stated that the party had always opposed the loan system. “The ChristenUnie does not want to leave the next generation with more debt.”

Break up

Except the coalition party did not want to break up the coalition agreement when a majority against the loan system emerged in the interim. Changes could only be made to the system after the elections in 2021.

Even coalition party D66 wants to amend the loan system. The party thinks many more students should receive a ‘student grant’ of 400 euros. Students from households with an income of up to 70,000 euros would also be eligible for it. Furthermore, all students should receive a tax benefit of 300 euros (since many students are currently just outside the threshold for allowances) and only pay half of their medical insurance premium.

In her letter to the Dutch parliament, Van Engelshoven writes that the next government could possibly tackle the ‘areas of concern’, partly thanks to the facts brought to light by the evaluation.

Recess

However, the parliament has just gone into recess. The members of parliament will not be able to debate the issue until September.