Hundreds of thousands will soon face higher student loan interest rates

Interest rates on student loans will increase significantly in 2027, affecting around 250,000 former students. Those required to repay their loans within 15 years will see the rate rise by almost one percentage point to 3.28 percent. For borrowers with a 35-year repayment period, the rate will increase by 0.37 percentage points to 2.7 percent.

The higher rates will only affect some former students. Their interest rate is fixed for five years before being recalculated, so the new rates will apply to borrowers who were still taking out student loans in 2026 and those whose five-year fixed-rate period ends this year. The rate is then adjusted each year for individual borrowers.

Borrowers who took out student loans before 2015 have to repay them within 15 years. Those who began studying after 2015 are given up to 35 years to repay their loans and face a lower interest

The interest rate had remained at 0 percent for years before rising to 0.46 percent in January 2023. It increased further to 2.56 percent the following year.

The Intercity Student Consultation (ISO) warned that the higher interest rate could leave borrowers paying “thousands of euros more” over the course of their repayment period. The organization said the “sharp increase” demonstrates how the financial burden of “economically uncertain times” is falling on students.

The National Student Union (LSVb) said the increase in interest rates means that “studying is increasingly becoming a financial consideration.” “With the current interest rate, the government is sending students into their future carrying a very heavy backpack,” LSVb chair Evy Kras said. The ISO and LSVb are calling on the government to introduce an interest rate cap.