The old system of student finance needs to return
Nowadays, students do not receive a financial grant to help them pay for their college anymore. In 2015, the new system was activated, but it does not help the students whatsoever. I was lucky enough to start my study before 2015. Because I was still part of the old system, I received the grant. Without this gift from the government, I would not have been able to study. I believe in fair chances for every student. I will not let the new students suffer from this system and that is why I want the old system to be reintroduced.
Negative effects
In my surroundings I have seen and heard many negative consequences of the new system. First of all, in the new system, students are able to receive a loan from the government. This loan has to be paid back within 35 years. This is a long period of time and only small amounts of money will be subtracted from their bank accounts monthly. It maybe seems like a well-functioning system, but there is a big problem. The way this financial system is organized, will only lead to grad students starting their career in debt. Getting out of these red numbers will always be a burden on their shoulders. The students are trying to start a career and life, and now they can’t.
Demotivation and stress are only two examples of potential problems when starting a life in debt. The first becomes clear when trying to find a job. One only has to start repaying the loan, from the moment that he or she starts working and has a real job. So when someone doesn’t have a job yet, the loan doesn’t have to be paid back. This procrastinating behaviour eventually demotivates students to start working. On the other hand, when trying to find a job, students might settle for less, just to get rid of this burden. Not being in the preferred job or position will, among others, lead to stressful situations. Experiencing many stressful situations will make adults unsatisfied or maybe even depressed.
More problems ahead
Finding a job is a difficult task, but there are larger effects on other areas of adulthood. After graduation, if they haven’t already moved out, most students would like to live on their own. But buying a house with such a huge debt is impossible! Getting a mortgage is difficult with a large debt, since banks are uncertain about the believe whether you will pay them or not. Therefore, this new system is not giving students a fair chance in life. They cannot buy a proper house for themselves to start their life and career in.
Just a short calculation, based on the regular student, who still lives with his parents, and is studying for 4 years for his Bachelor’s degree. In one year of school, the college fee is around € 2.000,-. In the old system, this student would get a compensation of approximately € 104,- per month, meaning € 1252,- per year. In total, this student would have to pay the remaining € 748,- to go to school in one year. When this is paid, and he receives his diploma within 10 years, he will have no further payments to make.
In the new system, however, the college fee is still € 2.000,-, but the student does not have this grant. This means that if he does not have the money to pay it by himself (or together with his parents), he has to lend money. Let’s say he does not have a job and has to pay for college all by himself. This will result in the fact he is forced to lend € 2.000,- to pay for school every year. And he has to pay all of that back!
This calculation is based on a student attending only one study/university. But what happens when this student has to start a new study, because he is unsatisfied with his current choice of study? He will have to lend even more money to make up for his ‘mistake’. This will lead to more stress in making the right decision for studies.
I would like to add that the government’s hypocrisy in the matter is quite interesting. On the one hand it pressures us to lend money for college. On the other hand, however, it tries to discourage us to lend money for large expenses. After every commercial on TV or on the radio, for example a commercial for selling cars, there is a governmental warning. This warning states that lending money will eventually cost you money. So why should we –students– lend money?
Scandinavia
When looking at the Scandinavian countries Sweden, Denmark, Norway, and Finland, one will find that they are known for their open-mindedness. They give everyone the same opportunity to learn. This is because any European student can study for free in these countries. Students only have to pay for their books and in some cases they need to pay a small administration fee. Free college applies to all the public schools. But that is ok, because most of the school in those countries are public schools, so basically, everyone can go to a free school. If it works in these countries, where the quality of educations is equal if not better than those in our country, to get access to free schooling, why isn’t this possible in the Netherlands?
In short, the new system to pay, or actually to lend, for college has more negative than positive consequences. Students are pushed into 35 years of debt at the start of their careers. This will make them less likely to be motivated to find the best possible job. Finding a fitting house will not be any easier. Banks are not fond of lending money to people with large debts. The new system makes it harder for students to go to college. When they do want to go, they have to make the right decision the first time. If they do not, it will cost them even more money. I will not be watching from a distance, watching students being treated this way. Looking at other countries convinces me it can work, so let’s bring the old system back, and give new students the same chances I have had!
