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Thousands of American college graduates leave college in the United States every year with not only a degree, but thousands of dollars in debt. In the American system, students are required to begin paying their student loans back as soon as they graduate.
In the United Kingdom, a different student loan payment system is in place. While it could be argued that its provisions are more favorable to recent graduates than the American system, it does have many drawbacks. One of these drawbacks is that many foreign students studying in the United Kingdom have been able to graduate without paying any of the money they owe.
The United Kingdom’s student loan system is operated by the Student Loans Company. In this system, like its American counterpart, students living in the United Kingdom are provided with government loans to pay for the costs of higher education. After graduation, however, students are not required to begin paying back their loans until they begin to earn a certain amount of money annually. These payments are made through taxes rather than direct payments to the Student Loans Company.
In 2006, the United Kingdom began to allow students living in members of the European Union to be eligible to receive loans from the Student Loans Company. But unlike residents of the United Kingdom, as soon as students from European Union graduate, there is no way to enforce that they pay any of their loans back at all. As a result thousands of students from the European Union who graduated from schools in the United Kingdom owe money to their respective Universities.
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