Some 10,000 current and former students will receive financial compensation as a result of mistakes made by DUO in its efforts to combat grant fraud. The restitution operation is expected to cost a total of 61 million euros, and the ministry is now taking the first step by distributing 200,000 euros among several dozen students.
Abuse
For several years, DUO used algorithms, home visits and chats with neighbours to track down fraudsters who were abusing the basic student grant system by claiming to live away from home while still living with their parents. Students living independently are entitled to 2,250 euros more in annual financial support than those living at home.
But journalists from HOP, Investico, NOSop3 and Trouw found that DUO’s anti-fraud campaign disproportionately targeted certain groups of students based on their background.
In hindsight, the writing had been on the wall for some time: DUO lost one in four court cases brought by students who felt they’d been unfairly penalised with fines and clawbacks. It then became clear that almost all of the claimants in these cases had a migrant background, after which a government-commissioned study confirmed the suspicions of discrimination.
Apologies
The previous cabinet apologised for the wrongdoing, and now the current administration has decided not to wait for possible lawsuits: all 10,000 students involved in the scandal will get their money back. The government expects the repayments to total 47 million euros, or about 4,700 euros per case. Including 14 million euros in implementation costs, the entire operation will have a price tag of 61 million euros.
In a short letter to the House of Representatives, Education Minister Eppo Bruins writes that he’s going to start by transferring around 200,000 euros to the first group of victims, even though the Senate still has to sign off on his department’s budget.
Bruins is keen to move quickly as some of those affected are aware of his predecessor’s apologies. Several dozen of them have already applied to DUO to have their fines and clawbacks overturned. The government has an obligation to process these appeals, and to respond to them in a timely manner.
But fast-tracking the first repayments has another advantage, officials write in a so-called ‘decision memo’ to the minister: it can be a teachable moment for DUO. Perhaps the overturning of the other fines and clawbacks will go more smoothly.
Compensation for ‘bad luck’ generation
Last week also brought good news for 353,000 students from the ‘bad luck’ generation. These students, who missed out on the basic student grant while the loan system was in place, received compensation from the government. For those who are still in debt, the amount has been deducted from their outstanding balance.
In this situation, however, DUO was not at fault. The basic student grant was abolished in September 2015, and reinstated in September 2023. Several political parties felt this was unfair to the generation that missed out and have decided to offer compensation. Another round of compensation is expected in 2027, but the details of this plan have not yet been finalised.