The authorities of Amsterdam are going to launch a pilot program, in which they will redeem the debts of young people. All in order to relieve young people from stress and give them the opportunity to get an education.
The problem also affected the Netherlands, causing concern for local authorities.
“Debts cause serious stress. If we talk about youth, debts directly affect its future. Many young people started with debt and, because of their bad luck or ignorance, found themselves in a situation from which they cannot get out without outside help. Therefore, now we are going to help them so that they can start all over again, ”said Deputy Mayor of Amsterdam Markholain Murman.
The pilot project starts in February 2020 and should help young people who want to get an education or find a job. Under this program, a municipal bank will repay debts from lenders, offering them € 750 for each borrower as an incentive.
Debtors participating in such a program will be assigned mentors to help them prepare an action plan to get out of this situation. According to the authorities, it is often difficult for young people with unstable incomes to restructure their finances and make the necessary payments.
Also, program participants will be given a new loan to pay off debts. They will not be able to repay the bulk of this loan if they engage in their education.
According to The Guardian, 34% of Amsterdam residents between the ages of 18 and 34 have debts today. The average debt of Dutch students rose from € 12,400 in 2015 to € 13,700 in 2019. The number of people with an outstanding loan for education has also increased: if in 2015 there were about 388,000 such debtors, then in 2019 – 1.4 million.