The Dutch Cabinet has dropped a promised 2.5% cap on student loan interest, saying it cannot afford it. Student groups reacted with anger, since interest rates directly raise the total debt graduates repay.
Loan interest determines how much of every repayment goes to debt instead of daily life, affecting graduates for years. Dropping promised relief signals tighter budgets for students and young workers.
Watch Dutch parliamentary debate over whether lawmakers challenge the dropped 2.5% interest cap.