Cabinet promise to limit study interest under pressure: plan turns out to be far too expensive

The Dutch government's plan to cap student loan interest at 2.5% is proving to be significantly more expensive than anticipated, leading to concerns about its feasibility. Education Minister Letschert expressed disappointment over the rising costs, which could exceed four times the initially allocated 40 million euros, impacting the education budget. The interest rate on student loans has recently increased to 3.28%, prompting renewed discussions about the cap. Critics warn that the cap could lead to increased borrowing among students, further straining government finances. Despite previous warnings, coalition parties remain committed to the plan, facing pressure from student organizations to uphold their promise.