Student union furious as minister says interest cap unaffordable
Despite a coalition promise to cap student loan interest rates at 2.5%, education minister Rianne Letschert has told parliament that...
Student union expresses fury over minister's claim that a 2.5% interest cap on student loans is unaffordable. Education minister Rianne Letschert revealed that the government can no longer afford to maintain the cap, citing the annual €40 million budget as insufficient – it would cost €160 million. Letschert attributed the issue to rising global interest rates and financial instability, with long-term interest rates increasing from 2.7% to 3.3%.
Students' unions LSVB and ISO criticized the decision, with LSVB stating it "burdens students with an incredibly heavy backpack of debt" and ISO calling students "victims of empty promises." Letschert plans to address the matter in parliament later this month.
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