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November 10, 2023 | Eva Bloukink
A significant number of graduates in Curaçao have trouble paying off their student debt: 65% don’t repay their DUO loans on time. How is this happening? They often don’t realize that they have less to repay, or even nothing to repay.
DUO Caribbean coordinator Monique Hoogerwerf said this is very unfortunate and in many cases unnecessary. “If the income is really insufficient, we can reduce the monthly amount. Sometimes you don’t even have to repay anything.”
In the Netherlands, DUO can verify the former students’ income with the tax authorities. In Curacao, someone has to raise the alert in person. “We don’t have access to tax information there. But if we have a certificate from the local tax authorities, we can adjust the monthly amount if it’s too high.”
65% Delinquent payments
Currently, around 7,000 former students living in Curaçao are registered with the Education Executive (DUO). “The average student debt is 30,000 euros. The debt ranges from zero euros to one hundred thousand euros.”
Around 65% of the 7,000 graduates owe tuition fees, with the average amount reaching 14,000 euros.
Many former students owe tuition fees
Many former students were unaware that they could adjust their monthly repayments, or did not understand the arrangement properly. This led to people getting into unnecessary trouble. Some borrowed money from friends and other institutions, while others never heard from them again.
Hoogerwerf has seen some heartbreaking cases where the backlog of outstanding debts has grown while regular debts have continued to be paid. “Unfortunately, in the end we have no choice but to turn to a collection agency.”
“Let’s see what you can afford”
DUO wants to prevent people from falling into that vicious cycle. “We look at what you can afford,” Hoogerwerf said. “Rather than just looking at the amount, length and interest of your student debt, we look at how much you have to pay back.”
But people in Curacao must identify themselves. DUO said it is making every effort to get in touch with former students who owe tuition fees.
There is also a dedicated Facebook page DUO for paying off Caribbean student debt. The website duo.nl/antillen contains videos explaining popular topics such as the option to reduce the monthly amount and pay via a Curacao bank.
Temporary Service Office
“It’s still difficult to keep people informed and alert,” Hoogerwerf said. So she and three colleagues visit all six islands twice a year and provide information.
“You look people in the eye and see if they understand what you’re saying. It’s about finding solutions.”
“Lending wisely”
“Borrow wisely” is the motto in the Netherlands. This is also the message that the Student Finance Foundation of Curacao (SSC) offers to students from Curacao in the Netherlands. In addition to the financing provided through DUO, SSC also provides additional pocket money of around 60 euros per month.
Curacao students who choose to study at the University of Curacao (UoC) or in the region can apply for student aid through the SSC. In the region, this amount ranges from $15,000 to $18,000 per year. “It’s a lot of money,” said Sidney Justiana, director of the SSC. “Students need to realize that they have to pay back their loans once they find a job.”
Fast graduation
The Curacao Foundation tries to encourage former students to pay off their debts as quickly as possible through payment arrangements and discounts. Justiana believes there will always be defaulters. “Our strategy is to stay in touch. We explain why it is important to pay off the debt: then your children can also apply for financing later.”
A lot of pain can be avoided if students graduate sooner. Therefore, the right choice of study is crucial, the SSC said. “Students choose their majors in their third year of secondary school. They are only 15 years old then. I think that is still young.”
Therefore, the Curacao Student Finance Agency is currently conducting an “affinity test” to indicate which courses are best suited for you.
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