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Withholding Study Debt Becomes More Difficult | Consolidation of Loans

Someone finally woke up in The Hague. Minister Kamsa Alodia wants a debt declaration from the Education Executive Agency (DUO) to be issued. Banks can then check whether there is a student loan when issuing a mortgage or consumer loan. Withholding a student loan then becomes more difficult.

 

Outstanding debt instead of the original debt

Outstanding debt instead of the original debt

It took a while, but this is finally a step in the right direction. Moreover, there is more good news. When calculating the study debt, the Minister wants to look at the outstanding study debt and not at the original study debt. Below is a simple example:

  • Study debt at the start of 30,000
  • Current study debt 10,000

In the assessment for the maximum mortgage, the original study debt of 30,000 euros must currently be taken into account, unless additional repayments have been made in the interim. The Minister wants the future study debt to be taken into account (10,000 euros in this example) for the maximum mortgage calculation.

Below is a calculation example of the consequences of the new rules when calculating the amount of the maximum mortgage:

  • Income 40,000
  • Test interest 2.5%
  • Study debt at the start of 30,000
  • Current study debt 10,000
  • Maximum mortgage without study debt 172,943
  • Maximum mortgage with 30,000 euros study debt 138,776
  • Maximum mortgage with 10,000 euros study debt 161,554

The difference is clearly visible. The maximum mortgage is significantly higher in this calculation example if you can test with the current study debt.

 

Forgotten small debts?

Forgotten small debts?

The Minister wants to go one step further. If very little study debt still needs to be paid, the study debt may be disregarded. The latter sounds very nice, but what amounts should I think about? Is a study debt of 5,000 euros very low, so then negligible? With the latter, the Minister ends up in a gray area. This will only lead to discussions. So just include the current study debt in the assessment.

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