News item | 25-03-2022 | 14:15
In the 2023-2024 academic year, the cabinet wants to reintroduce the basic grant for all students in higher education, including students who are already studying. In a letter to the House of Representatives, the cabinet outlines the dilemmas, considerations and choices in the reintroduction of the basic grant and the allowance for student loan system students. Minister Dijkgraaf of Education, Culture and Science will discuss this proposal with the House in order to then further concretize the plans.
Reintroduction of basic grant
The cabinet wants to reintroduce the basic grant in higher education for all students in the 2023-2024 academic year. Students who start their studies next academic year (2022-2023) will therefore benefit from a basic grant from their second year of study, if they meet the criteria for this.
As with the ‘old’ basic grant, the proposal is to introduce a performance grant with a distinction between students living away from home and students living at home. In the letter, the cabinet sets out various alternatives: in the preferred variant, this concerns an amount of 255 euros per month for students living away from home and 91 euros per month for students living at home. If the training is completed within the diploma period of 10 years, the basic grant will be converted from a loan into a gift, just as before.
The cabinet also wants to finance a number of additional measures from the budget for the basic grant. In order to reduce the inequality of opportunity in education, the government wants to ensure that more MBO and higher education students who are entitled to a supplementary grant will also make use of it. In addition, the proposal is to abolish the additional income limit in MBO. In higher education, the previously abolished additional income limit will not be reinstated, compared to the ‘old’ basic grant. A side job or own business is a good way to gain work experience, contributes to general development and can reduce debt. Finally, in the government’s preferred variant, the repayment conditions in MBO will be relaxed.
Compensation
The cabinet recognizes that the reintroduction of the basic grant is harsh for the generation that has studied between the two systems. Although a (financial) contribution in the event of a policy change is unusual, the cabinet still wants to make a gesture towards students who have studied under the student loan system. The letter that was sent to the House of Representatives contains a number of dilemmas about its structure, each based on the available EUR 1 billion from the coalition agreement. For example: allowance for all students, or only those who have made use of student grants?
For the time being, the cabinet is leaning towards an allowance for all students who fell under the student loan system and who have obtained their diploma – even if they were entitled to student grants at the time, but did not make use of it. For a (nominal) study period of 4 years, it concerns more than 1,400 euros. Students who start a study program in academic year 2022-2023 will still have to deal with the loan system for one year and will receive an allowance of 359 euros.
Introduction of the basic grant is a top priority for the Education Executive Agency (DUO). That is a considerable, technical job, for which there is also relatively little time. Only then can DUO get started with the system adjustment for the allowance. Despite the great efforts of DUO, payment or settlement will not be possible before 2025.
Extra money via study vouchers
As an extra amount of money on top of the allowance, the cabinet proposes to make existing study advance vouchers freely disposable. For approximately 374,000 students, an amount of approximately 1,770 euros is deducted from their student debt. If there is no student loan (anymore), this amount will be paid out. Students from the first four academic years of the student loan system received these vouchers after obtaining their diploma because they were not yet able to benefit from the investments in improving the quality of higher education. To date, the vouchers can only be used for further training.
Example: anyone who has completed their studies in four years and studied from the 2015-2016 to 2019-2020 academic year will receive 3,206 euros: a total of 1,436 euros in compensation (preferred variant) and approximately 1,770 euros from the student loan voucher.
Conversations with students and the House of Representatives
In addition to the above plans, the cabinet is in talks with young people about the broad concerns of their generation, such as being able to find a home or pressure to perform. For example, Minister Dijkgraaf is currently holding talks with students throughout the country under the heading ‘Speak out!’. The results of this exploration will be sent to the House of Representatives and the Senate. After all, the reintroduction of the basic grant and the allowance has not solved all the problems of this generation.
On 4 April, Minister Dijkgraaf will discuss his proposal and the dilemmas from the outline letter with the House of Representatives. Shortly afterwards, the internet consultation will start and everyone will be able to respond to the proposal. The plans will then be submitted to the House of Representatives as a bill.