The student is not required to reimburse the loan right after they finish their education. DUO allows the student some time after obtaining their degree to find a job and become financially stable before starting the redemption of their student loan. This is called the start-up phase. This phase lasts two years and starts the 1st of January after the student finishes their degree. For example: you finish on September 1st 2015, the start-up phase lasts from January 1st 2016 until January 1st 2018. In the start-up phase, you are not required to start redeeming your study loan (although this is always allowed of course). The redemption phase follows after the start-up phase.
Redemption phase for students falling within the old framework
If you fall within the old framework, the period of redemption is 15 years. In principle, it is expected that you redeem the entirety of your student loan. The minimum amount of redemption per month is therefore the amount of the debt, divided by 15 years, divided by 12 months. However, DUO is required to take your financial capacity into account. If you received the first study grant for your degree at a regular university or university of applied sciences between September 1st 2009 and September 1st 2015, you fall within the redemption regulation applicable from 2012. This entails that you don’t have to pay a monthly redemption of over 12% of the additional income on top of the minimum wage. The income of a partner is always included in the calculation of your financial capacity. You may always opt for a faster redemption.
Redemption phase for students falling within the new study grant framework
If you fall within the new framework, you will be allowed more time for redemption of your study loan. The mandatory period of redemption has been modified from 15 to 35 years. If you fall within the new framework, you don’t have to pay a monthly redemption of over 4% of the additional income on top of the minimum wage. The income of a partner is always included in the calculation of your financial capacity. You may always opt for a faster redemption.
Transitional arrangements
If you have accumulated a study debt under the conditions associated with the old framework, and you start your master’s degree or another bachelor’s degree under the conditions associated with the new framework, you are offered a choice. You can choose between redeeming your accumulated study debt in accordance with the old regulations, or the new.
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