Loan for students
A researched students who borrow money in addition to their student finance. On average, students borrow 365 USD per month, but are often ignorant of the loan conditions and options for surcharges and tax refunds.
Research among 3,000 students by the National Institute for Budgetary Information (Nibud) has shown that students borrow an average of 365 USD per month, but often know little about loan conditions and possibilities for tax refunds and surcharges. As a result, students miss out on a lot of money and are left with high debts. More than a third of all HBO and WO students borrow money through the Education Executive Agency (Binary Lender). After four years of study, this results in an average student loan of 17,500 USD.
Students are not informed about loan conditions
It is striking that almost a fifth of the students do not receive a health care allowance and more than 10% do not file a tax return. In addition, students are very poorly informed about the loan conditions. For example, a quarter do not know how high the interest they pay and some think that borrowing from Binary Lender is free. Half of the students surveyed also do not know that they already pay interest on their debt during their studies. However, most students are not at all concerned about whether they can ever pay off their debt.
In total, more than a third of the 650,000 higher education students borrow extra money in addition to their student finance from Binary Lender. 55% of the 3,000 respondents think that Binary Lender makes it too easy for them to borrow money. It is possible to receive hundreds of USD per month within a few mouse clicks.
The possibilities for income such as surcharges and tax refunds are also unknown to many students. About 120,000 students do not receive a health care allowance while they are entitled to it. In addition, a quarter of the students do not file a tax return and thus leave the opportunity on a lot of money. Partly due to the low income from side jobs, students can often reclaim a large part of their payroll tax.
Yet saving is also quite popular with students, more than two-thirds of the students save 100 USD per month and have around 4,500 USD in a savings account. It is remarkable that half of the students save with a loan at the same time.