Dutch state loses €170m in debt from ex-students living abroad

The Dutch state faces having to write off €170 million in unpaid student debts because it lost touch with former students who moved abroad.

Last year around 21,000 Dutch citizens who owed student debt could not be traced by the student finance agency DUO, which has the responsibility to reclaim unpaid debts and fines.

The cabinet wants to change the law to make it a legal obligation to provide up-to-date contact details to DUO, either in person or through a friend or relative.

People who move abroad would still have to provide a forwarding address and DUO would make at least two attempts to contact them.

The education ministry is also investigating how it can exchange more information with other countries about Dutch citizens living elsewhere. The bill is currently the subject of an online consultation before the draft version is sent to parliament.

Currently the agency is unable to contact someone for five years the debt and fines are written off.

In 2018 the government had to abandon €76 million owed by around 20,000 former students, a figure that more than doubled last year to €170 million.