Nibud: inflation eats away at basic grant

Nibud: inflation eats away at basic grant

The Netherlands Budget Institute (Nibud) claims that the basic grant helps students, but high inflation is threatening to hit them hard. All the calculations are in danger of being overtaken by inflation, is the conclusion.

Students living at home should not have to incur debts anymore, says the report (in Dutch), and they do not even necessarily need a job on the side. Students living away from home should be able to absorb their extra costs (EUR 255) with their higher basic grant and a part-time job.

But that is all without counting inflation, which makes the expenses considerably higher. Students will have to work more (‘a substantial part-time job’), earn more or borrow more. Economising is not really an option.

So the Nibud draws an inevitable conclusion about the new basic grant. Students obviously have to borrow less. It saves students living at home EUR 5,275 and those not living at home EUR 13,147. But, ‘These positive effects are probably tempered by high inflation’.

The House of Representatives had requested this study by the Nibud. Minister Dijkgraaf sent it to the House without comment. (HOP, BB)