Student debt grows due to high cost of living and may limit future mortgage options
The cost of living for students in the Netherlands has risen significantly, resulting in higher debt levels as students struggle to cover daily expenses. This accumulated student debt is now posing a major hurdle for young professionals, as it substantially limits their ability to secure future mortgages.
Research from the platform Raisin indicates that student housing costs in the Netherlands have surged by 50 percent between 2016 and 2026. With monthly expenses for rent, tuition, groceries, and insurance reaching approximately 1,100 euros, students face an average monthly shortfall of 775 euros. This growing financial burden is forcing many to rely heavily on student loans from DUO to cover their basic living costs. Experts warn that students often underestimate how these debts significantly reduce their future borrowing power for mortgages. Mortgage advisor Oscar Noorlag explains that a 40,000 euro debt can reduce a potential mortgage by about 36,000 euros, impacting housing accessibility significantly. Despite these long-term risks, the debt is not officially registered by credit agencies, leading to calls for more transparency and potentially more lenient mortgage criteria for starters as their careers progress. Financial experts emphasize the importance of early planning to avoid future debt-related complications when entering the housing market.
Based on reporting by nu. Translated and condensed by LocalHeadlines.
