Student - December 6, 2011

Borrowing at a bargain from DUO

A lucky break for students who borrow from DUO: the interest rate for study loans will go down from next year, from 1.5 to 1.39 percent, the lowest since 1992.

Students who borrow from DUO have to pay interest throughout their period of study. This interest rate is determined from year to year. The interest in 2011 is already at a relatively low rate of 1.5 percent. In comparison, the rate was 5.18 in 2001 and 4.17 in 2008.
Graduates pay a fixed interest rate for every five-year period; the rate is determined in the calendar year after graduation. A graduate in 2011 will have to pay an interest of 1.39 percent for five years for his debt from 1 January 2012 onwards. This rate will be re-adjusted in 2017.
Moreover, those who want to stop paying their debt temporarily may do so from 2012. They will then be given five so-called 'joker years' (sixty months) which they can put forward in periods of at least three months each. Interest will be charged continuously throughout this period and the maximum repayment period will be prolonged by the number of submitted joker months.
The average debt owed by those who began paying back in 2010 is 14,657 euros. For the current generation, a quarter of whom are borrowers, this amount is estimated to be 15,360 euros.
To calculate how much money you will have to pay back in the future, consult the Nibud study guide 'studieleenwijzer' or watkostmijnstudieschuld.nl.
N.B.! Borrowing money costs money.

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