There's a variety of ways for students to borrow money. The most widely known options are student finance and an optional tuition fees loan. Both are offered by DUO. You can also opt for an arranged overdraft, a loan from the bank or a credit card.
"}},{"componentType":"paragraph","title":"Student loan from DUO (Education Executive Agency)","richBody":{"value":"When you take out a student loan or a tuition fees loan from DUO, they'll send you a fixed amount of money each month. This is called student finance. You pay interest on these loans, and the interest rate may vary each year. After you've finished your studies, you'll need to repay the entire loan plus interest. You can cancel your student finance whenever you like. Your DUO loan will not be listed in the Dutch National Credit Register (BKR). You are, however, obliged to disclose your student debt when you apply for a mortgage.
"}},{"componentType":"paragraph","title":"Student debt at DUO: a calculation example","richBody":{"value":"Let's say you've been borrowing €300 a month from DUO since you started your studies. You graduate after 5 years with a student debt of more than €18,000 due to the interest. How your student debt repayments will work depends on when you took out the loan: before or after September 1, 2015. Please visit DUO's website for more information.
You pay interest on your student loan from the moment you start borrowing. While you're enrolled, the interest rate on your debt to DUO is adjusted each year. After graduation, it'll be fixed for 5 years. Find the current interest rate on DUO's website.
"}},{"componentType":"paragraph","title":"A loan from the bank","richBody":{"value":"If you're 18 or older, you can apply for a personal loan from a bank. How much you can borrow depends on your income. The loan amount will be deposited into your account all at once. You'll then repay your loan plus interest over a previously agreed upon term. Please note: personal loan interest rates are much higher than DUO's. You'll also need a steady income to ensure you can repay the loan. If you work part-time during your studies and your income fluctuates, a personal loan won't be your best option.
"}},{"componentType":"paragraph","title":"Credit card","richBody":{"value":"If you're a student and you have an ING student account (ING Studentenrekening), you can apply for a student credit card. Every time you pay with a credit card, you borrow from your card provider to make that payment. Since your statement balance is debited from your current account in full each month, you won't pay any interest. And your credit card won't be listed in the Dutch National Credit Register (BKR) either. To prevent unarranged overdraft (on which you may be charged interest), please make sure to have sufficient balance on the due date.
"}},{"componentType":"paragraph","title":"Payday loans come with risks","richBody":{"value":"Some lenders offer payday loans, also known as short-term loans, or ‘flash loans’ in Dutch ('flitsleningen'). A payday loan lets you quickly borrow a small amount of money—typically a few hundred euros. You apply online or via text and repay the loan within a few weeks. But because of their short term, payday loans are not subject to Dutch credit laws. This allows payday lenders to charge much higher fees than typical lenders. Borrowing €100 means you'll pay back an average of €125. And that within just a few weeks. While a payday loan may seem like a good idea at first, getting one should never be taken lightly.
"}},{"componentType":"paragraph","title":"Borrowing tips","richBody":{"value":"We'd love to help you manage your money and prepare for life's milestones. Get expert advice and useful tips by subscribing to Tips and benefits. Please register your e-mail address if you haven't already!
"}},{"componentType":"linkList","iconTitle":{"title":"Student"},"textLinks":[{"url":"/en/personal/students","text":"Student products"},{"url":"/en/personal/digital-banking/app","text":"The ING app"}]}]}}}