Over 353,000 former students across the Netherlands received financial compensation this week from the Dienst Uitvoering Onderwijs (DUO), totaling around 555 million euros. This payment addresses grievances from those who studied under the student loan system from 2015 to 2023, when students were denied study grants and forced to finance their education through loans.
These former students, termed the 'pechgeneratie', or 'unlucky generation', are now benefiting from this compensation as they grappled with the financial burden of substantial loans during their educational journeys. Each eligible student is receiving approximately 1,800 euros as compensation for the lack of grants during their time of study. The compensation applies to those who studied at least one full year under the loan system and have since graduated.
According to DUO, this compensation scheme is aimed explicitly at individuals who experienced challenges due to the transition away from the study grant system. The new policies dictate compensation at 34.17 euros for every month students were deprived of the basic grant.
Alongside this, students who attended university between 2015 and 2019 received additional funds termed 'study vouchers', amounting to almost 2,100 euros. This extra financial support recognizes the fact these individuals not only missed out on grants but also did not benefit from increased educational investments touted as reasons for the introduction of the loan system.
DUO has clarified who is eligible for these payments. Only former students with minimal loans or debt will receive the full compensation, as many accrued little to no debt. Earlier, those who had larger debts also received financial assistance, with their burdens reduced accordingly.
While many students welcomed the additional funding, reactions have been mixed. Abdelkader Karbache, chairman of the Landelijke Studentenvakbond, expressed frustration, noting, "The compensation payments are just 'a drop on a glowing plate', as many students accrued thousands or even tens of thousands of euros in debt." He highlighted the disparities faced by undergraduate students who graduated with only bachelor's degrees and are now excluded from the additional vouchers—pointing out how many of them sought employment immediately to avoid accruing more debt.
This compensation distribution marks only the beginning of the government’s efforts to address these long-standing issues within the educational funding system. Current students completing their studies may also be eligible for these compensation measures once they graduate, and there is potential for internationally-studying students to apply for similar supports, pending their own requests.
The decision to compensate students held under the erstwhile college financing regime resonates significantly as many reflect on their prior experiences with stacked loans. Changes to the Dutch student financing system have been top-of-mind since the reintroduction of the study grant amid rising criticism of the earlier loan-only approach.
The overall reception of the fund distribution raises questions about the adequacy and equity of current policies to effectively redress the financial burdens many students continue to bear, keeping the dialogue about student debt and educational financing very much alive.