WILLEMSTAD – The Curaçao government is preparing to fully write off approximately Cg. 3 million in student loan debt after concluding that years of poor collection practices caused disproportionate interest burdens on former students.
The decision is outlined in the Financial Management Report for March 2026, which discusses long-standing problems surrounding government-issued study loans.
According to the report, analysis showed that a group of former students consistently met their payment obligations over many years, yet accumulated large debts due mainly to interest charges. Of the Cg. 3 million total debt under review, roughly Cg. 724,000 consists of principal, while more than Cg. 2.27 million comes from accumulated interest.
The report states that the government failed in the past to make sufficient efforts to collect outstanding balances on time. Authorities also concluded that the practice of charging “interest on interest” caused the interest component to become disproportionately large compared to the original loans.
The Ministry of Education and the Ministry of Finance determined that this approach no longer aligns with the government’s vision for public student financing policy. Officials argue that affordable study financing is essential for developing a skilled workforce and supporting Curaçao’s economic future.
As a result, both ministers decided to fully forgive the outstanding debt in order to clean up the government’s financial administration and ensure a more accurate presentation of the country’s accounts.
The report notes that the write-off has not yet been formally processed because the ministerial decree required for the measure had not yet been signed at the time of publication.