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Discriminatory Student Finance Algorithm Leads to Government Refunds

The Dutch government is returning millions of euros to students after a discriminatory algorithm was used to detect fraud in student finance.

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Dutch

Netherlands

NetherlandsGovernmentFraudDiscriminationAlgorithmStudent Finance

NosDuoInvestico

Jeroen Van EijndhovenBruinsDijkgraaf

What period did the discriminatory practices occur?: Between 2012 and 2023, DUO, the organization that distributes student grants, used an algorithm that disproportionately targeted students with a migration background who lived away from home.
What is the main issue addressed in the news article?: The Dutch government will return money to approximately 10,000 students and former students due to discriminatory practices in fraud detection for student finance.
How much money will the government allocate to rectify the situation?: The discriminatory algorithm led to unfair fines and recovery of funds; the government will now repay these amounts, totaling 61 million euros.
Who conducted the investigation that revealed the discriminatory nature of the algorithm?: The flawed system was stopped after NOS and Investico published an investigation, and an inquiry confirmed unintentional indirect discrimination. Minister Dijkgraaf apologized for the issue.
What kind of compensation will be given to students besides the return of fines and recovery amounts?: Students who had their grants reduced from 'away from home' to 'at home' rates will also receive compensation to cover the difference, provided they continued living at the same address.

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