The Social Loan System Makes Us Look a Bit More like the US

http://watchingamerica.com/News/240036/the-social-loan-system-makes-us-look-a-bit-more-like-the-us/



The Social Loan System Makes Us Look a Bit More like the US
Trouw, Netherlands
By James Kennedy
Translated By Anne Hukkelhoven
31 May 2014
Edited by Gillian Palmer

Will the student loan system, announced shortly before Ascension Day, bring American conditions to the Netherlands? In the Anglo-Saxon world, many students are cornered by sometimes sky-high debts after their studies. Although the effects might turn out better than expected, the Dutch system is becoming more and more similar to that of the United States.

Of course there are important differences. American universities are very expensive. The average annual cost for a bachelor’s degree at a private university in the U.S. is 33,000 euro. At New York University, one of the most expensive, a student pays 44,000 euro per year. If you want to study cheaper, you can go to a state university. Residents of that state get an education at a reduced rate: on average, 17,000 euro per year.

However, many scholarships are provided. In the Netherlands, students whose parents earn less than 46,000 euro per year will receive an income-dependent scholarship. In America, many more students receive scholarships, even when their parents earn more. The amount of the scholarship often depends partly on the talent and grades of students and partly on their financial situation. When I studied, I only had to pay 40 percent of the actual costs of my degree, housing and meals. The rest was reimbursed by the scholarship I received. Students often choose the institution with the best “deal.” In this regard has a “social” system like Minister Bussemaker’s long been in place in the U.S.

~snip~

The American government is aware of the debt problem; therefore, the conditions are rather favorable. Students can choose how much they want to repay per month and over which period. But Dutch students will be [treated] better still. American students are allowed 10 to 25 years to repay their debt; Dutch students will have 30 to 40 years. Americans spend 10 to 15 percent of their income on redemption; the Dutch do not have to pay off more than 4 percent. The interest is lower as well. Nonetheless, you start with a substantial debt when you are ready to enter the labor market and buy a house. There are currently 7 million ex-students in the U.S. who do not pay off their student debts in time. Despite favorable conditions in both countries, high debts come with risks.