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Local repayment in your own currency

If you opt for local repayment, you repay your student debt in your own currency  into a local bank. This is usually cheaper than transferring payments to the Netherlands.

How local repayment works

  • At the beginning of the year, DUO calculates your monthly instalments in euro’s. DUO then converts the amount into your own currency.
  • You receive an email with your monthly instalments and an explanation.
  • Each month you pay your instalment in your own currency into a local bank account.
  • Each month you receive an email listing your payments.
  • By the end of the year, there will be an exchange rate correction if necessary.

Exchange rate correction
  • At the start of the calender year, DUO converts your monthly instalments into your own currency using the estimated yearly exchange rate .
  • For converting your payments, we use the  average exchange rate per month of the month of payment.
  • If the average exchange rate per month differs from the estimated rate, the value of your local currency increased or decreased. This means you have paid either too much or too little.

If the value of your own currency has increased, you have paid too much in euro’s. DUO will treat the surplus as an extra payment and deduct it from your debt.

If the value of your own currency has decreased, you have paid too little in euro’s. In December, DUO will add the deficit to your debt. This means you don’t have to pay it separately. There is 1 exception:

Have not all of your instalments, including December, been received by DUO by December 15? Then you will receive an invoice for the amount you have paid too little. This amount will not be added to your debt. You will need to pay it separately, in euro’s, into DUO’s Dutch bank account.

Register

To register for local repayment, complete the form ‘Register or cancel local payments’. You only need to register once. After that, the local repayment will be prolonged every year until you cancel it or your debt is paid.

Cheaper

Local repayment is usually cheaper than paying into a Dutch bank account. You will not pay:

  • high transaction
  • wire-transfer fees
  • correspondent Bank Charge
  • foreign currency risk

However, you will pay currency provision or license fee when paying from Curaçao or Sint Maarten.

Pay in time

Pay in time each month. Make sure the money is booked into DUO’s bank account by the last day of the month. This will prevent any arrears.

The December payment needs to be received by DUO by December 15. If you pay any later, these are the consequences:

  • If the value of your own currency has decreased, you will need to make an extra payment. You will receive a reminder in January.
  • The payment will not be listed on your yearly statement until next year.
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