Students discriminated against by DUO to receive compensation of up to 2,000 euros

The government will pay compensation to students who were subjected to the discriminatory checks and home visits carried out by student finance body DUO. An amount of 80 million euros has been set aside for this.

In its efforts to combat misuse of the basic grant for students living away from home, student finance body DUO primarily targeted students with a migration background. There was a case of indirect discrimination.

This emerged in 2023 from an investigation by the Higher Education Press Agency (HOP) together with Investico, NOSop3 and newspaper Trouw. It led to apologies from the cabinet and the repayment of all fines and reclaimed basic grants.

A compensation payment will now be added, Minister Rianne Letschert writes to the House of Representatives. The government is liable for the damage students suffered as a result of the unjustified home visits.

Fraud crackdown

If students live with their parents, they receive a lower basic grant than if they live independently. The difference currently amounts to 2,300 euros per year. Some students take advantage of this: they secretly continue living with their parents, but tell DUO they live elsewhere.

DUO tried to tackle this fraud, but did so incorrectly. Using a ‘risk profile’, the student finance body selected the most likely fraudsters, followed by home visits from inspectors. On the basis of sometimes very flimsy and poorly obtained ‘evidence’, DUO reclaimed money and also imposed fines.

There was (indirect) discrimination, which already began with the risk profile, as it disproportionately filtered out students with a migration background. At every stage of the process, the discrimination worsened. In court cases, 97 percent were found to have a migration background. DUO lost a quarter of those cases. This all took place between 2012 and 2023.

The government could not ignore this and the Rutte IV cabinet issued an apology. The Schoof cabinet initiated the repayment of reclaimed basic grants and fines. A compensation scheme will now follow.

Choosing

The damage may also include non-material harm, Minister Letschert writes to the House of Representatives. “Many (former) students indicate that the measures imposed on them led to mental health problems. DUO is now also receiving requests for compensation.”

Students can choose: either accept the government’s proposed compensation or have their individual damage assessed through a tailored procedure. The latter takes more time and is more demanding.

Around ten thousand students were fined or had their basic grant reclaimed. The government is offering them 2,000 euros in compensation. Another twelve thousand students received home visits from inspectors without financial consequences. They may receive 500 euros in compensation (as they were selected on incorrect grounds).

The cabinet is also looking further back. In the period 2009 – 2012, DUO ran pilot schemes with these checks, which, according to Minister Letschert, already went wrong. Home visits were carried out for four thousand students. This is believed to have affected around one thousand students, who were subsequently given a basic grant for those living at home. This group is not well identified and must report to DUO themselves to be considered for possible compensation.

Also for fraudsters

There were also students who did in fact commit fraud with the basic grant. Letschert: “With this approach, we accept that compensation will also be paid to (former) students who were not actually living independently and for whom the measure was therefore justified.” Due to the indirect discrimination, the evidence was unlawfully obtained.

The handling of cases, partly due to the tailored procedures, may take until 2030. A total of 80 million euros is involved, half of which is allocated to implementation. Four million euros is intended for independent legal support for (former) students.

On the indirect discrimination by DUO, Letschert writes: “The current cabinet also regrets that this could have happened and wants the government to be reliable and to take responsibility for its actions.”

Requests for compensation had already been submitted, which appear to have prompted reflection. Letschert: “I conclude that the State is liable for the damage these (former) students have suffered as a result of the decisions.”