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Some students manage to get through their studies without incurring too many costs, for example because they can continue living at home or their parents are able to provide substantial financial support.
But not everyone is this lucky, and in that case borrowing money becomes the alternative. So, let’s first take a look at the current rules for applying for a student loan and what exactly can be borrowed.
Student loan rules 2025
DUO, short for Dienst Uitvoering Onderwijs, is the Dutch government organization that provides student financing to students in vocational (MBO), higher professional (HBO), and university education.
Part of this financing can be a grant, but another part is a loan with interest, which you’ll need to repay after graduation.
You can decide whether you want to borrow and how much. This can range from just a few euros per month to the maximum total amount allowed.
Every loan you take out with DUO adds to your student debt, which you’ll have to pay back after your studies.
In 2025, the interest rate on student debt has risen to 2.57%. Repayments usually start two years after graduation, and the repayment period depends on the scheme: either 35 years or 15 years.
MBO students and HBO/WO students may sometimes face different interest rates on their student debt. In 2025, the rate for debts with a 35-year term has remained roughly the same as in 2024. For debts that must be repaid within 15 years, the rate is significantly lower in 2025.
Before 2023, the interest rate was even at zero percent for six years in a row, which meant borrowing from DUO was practically free. Not all former students pay the new interest rate right away, since interest is fixed for a five-year period.
What can you expect when applying for a mortgage with student debt?
- Calculation of your assessable income. When applying for a mortgage, the lender calculates your maximum mortgage based on your income.
- Deduction of monthly costs. The monthly costs of your student debt (interest and repayment) are deducted from this assessable income.
- Grossing up with a factor. This monthly amount is then “grossed up” with a factor, e.g. 1.20, depending on the mortgage interest rate. This means a higher amount is factored in than the actual monthly DUO payment.
- Extra repayments pay off! If you make extra repayments, your monthly debt burden decreases, and your maximum mortgage increases.
- Lower maximum mortgage. Because of this deduction and grossing up, you have less money available for your mortgage, lowering the maximum amount you can borrow.
- Important! Even if your student debt reduces your borrowing capacity, it’s crucial not to conceal it. This would be considered fraud and could put you on a financial blacklist. Your student debt is not registered with the BKR (Credit Registration Bureau) and is therefore not directly visible to your mortgage advisor.
How does student debt influence your mortgage?
Quite simply, your student debt directly affects the size of your mortgage and is definitely taken into account.
Your student debt lowers your maximum mortgage, because part of your income is reserved for the monthly repayments on your student loan. As a result, you can spend less on your mortgage payments.
The lender deducts this monthly repayment amount, multiplied by a factor depending on the mortgage interest rate, from your maximum disposable income. By (partly) repaying your student debt and showing this to the bank, your maximum mortgage can gradually increase again.
To get a clear picture of your financial possibilities and the impact of your student debt on your borrowing capacity, it’s wise to consult a good mortgage advisor.
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