Tax-free student debt repayment is becoming more common

More and more large employers have included in their collective labor agreements (CAO) that employees can repay their DUO debt tax-free through their payslip. This can result in thousands of euros in savings.

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For specific 'tax-friendly purposes,' employers are allowed to transfer part of the salary tax-free. In addition to sports, courses, or a new bicycle, for example, the tax authorities also contribute to the setup of a home office, union dues, or extra travel expenses.

Expanded

The student loan was usually not included in that list, noted the CNV Youth union last year. However, this is starting to change, reports RTL Nieuws. At the request of the unions, several organizations such as the Dutch government, ProRail, ING, KPN, the UWV, and Schiphol have expanded the so-called gross/net arrangement with approval from the tax authorities to also include DUO student loan repayments.

The amount that can be used for repaying the student loan varies by employer. At KPN, it's 5,000 euros every two years, while at the Dutch government, it's 2,000 euros per year.

Calculator

RTL Nieuws offers a calculator to estimate the tax benefit. If someone repays in this way for years, they can have about half of their student loan reimbursed through the tax authorities. However, this money can no longer be used for other tax-friendly purchases, such as a bicycle.

 

 

Tax benefit
(when repaying 2,000 euros tax-free annually)

 

 

Gross monthly income

3.500

5.000

6.500

student debt

20 K

Repay over 15 years

8.969

10.723

10.723

 

 

Repay over 35 years

9.086

10.723

10.723

student dept

40 K

Repay over 15 years

13.357

16.085

16.085

 

 

Repay over 35 years

18.003

21.446

21.446

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