Groningen Students Face the Highest Average Student Debt in the Netherlands
High living costs and the national loan system have caused Groningen students to accumulate the highest debts in the Netherlands.
Students in Groningen are facing the highest average student debt in the country, according to a study by the Central Planning Bureau (CPB). This issue affects students in both vocational and higher education and can be attributed to several factors, including the common practice of students living away from home and the implications of the national loan system.
Debt Across Education Levels
University (WO) students in Groningen graduate with an average debt of €12,500, while students in higher professional education (HBO) face debts of €6,300. Vocational (MBO) students have the lowest average debt nationally at €900, but in Groningen, MBO students are still among the most indebted compared to other cities, with an average of €6,000.
The financial burden is worsened for long-term students who take longer than expected to complete their studies. For these students, debts can exceed €40,000, with some reaching as high as €80,000.
Living Away from Home Drives Debt
A significant driver of high student debt in Groningen is the large proportion of students living away from home. Around half of the city’s student population of 60,000 live independently, a higher percentage compared to other major student cities such as Utrecht or Rotterdam. Living independently often mean additional costs for rent, utilities, and other necessities, pushing students to borrow more.
Socioeconomic Disparities
The CPB highlights a stark difference in debt levels based on family income. Students from lower-income households face average debts €8,600 higher than those from wealthier backgrounds. This gap is partly due to differences in graduation rates, as students from lower-income families are less likely to complete their degrees and thus lose access to grants and subsidies.
Gender and Field of Study Differences
Men in higher education generally accumulate more debt than women, potentially due to longer study durations in technical fields, which men tend to pursue more frequently. Additionally, the choice of study has a significant impact on debt levels. Students in fields such as history, linguistics, and art accumulate nearly double the debt of those studying agriculture, health, or education.
Broader Implications of Student Debt
The CPB notes that while international studies suggest student debt can delay major life events such as marriage, homeownership, and starting a family, evidence specific to the Netherlands is inconclusive. Some studies suggest higher debts may slow the transition to these milestones, while others show no significant impact.