“I only wanted to apply for the basic grant of three hundred euros,” says Finnish student John Nordberg, who is doing a Master’s in Leiden. He expected MyStudentFinance to cost him between one and two hundred euros. Instead, he ended up paying 870 euros, because the company arranged a maximum student loan for him without asking. When he complained, the company emailed back: ‘you never said you didn’t want a loan’. They also referred to the general terms and conditions, which state that MyStudentFinance acts as a representative of students “when applying for grants and loans from DUO”.
According to the Public Prosecution Service, what the company does is not illegal. “It may be morally questionable, but it is not a criminal offense.” Students find it misleading. “I’m really surprised that all of this is legally allowed”, says Sarah Evink of national student union ISO.
Students authorise MyStudentFinance to use their DigiD and must hand over all kinds of information about their work and their parents’ income. MSF then applies for a grant or loan at DUO on their behalf. The company charges a fee of 59.99 percent of the first payment.
There’s a catch, DUO warns. Because students only apply for a grant after arriving in the Netherlands, they “often receive three or four months worth” in one lump sum the first time, says a spokesperson. And MyStudentFinance keeps 60 percent of that entire amount.
ISO hopes that politicians will ban these kinds of business practices. But that won’t be easy: you are always allowed to hire someone to perform a service for you, especially if the general terms and conditions clearly state what the costs will be.
HOP