The student debt crisis isn’t restricted to the United States. Graduates in other Western countries also struggle with the cost of their college educations.
While student loan systems differ substantially between nations, the situations in other countries provide useful contrast to the state of student debt in America.
Student Loans in the United Kingdom with Lessons for the U.S. System
The United Kingdom has seen major changes in higher education finance over the past several decades. In fact, prior to 1998, most British students did not have to take out student loans at all. Education at public universities were tuition-free. More recently, following the adoption, and gradual increase, of tuition fees, loans have become a more prominent feature of British higher education.
In fact, British students graduate with much higher average debt than their American counterparts. As of 2019, it is the highest worldwide.
However, repayment is generally less onerous, as it is made through an income-contingent dependent payroll tax. This ostensibly ensures that low-income graduates are not unduly burdened. By most estimates, a majority will likely never pay the full balance, as loans are forgiven after 30 years across the board.
Nonetheless, as tuition prices have crept up and income thresholds for realistic repayment have only ong prospective students that their debt burdens will, like those of their much-discussed American compatriots, become unsustainable. Continue reading “Student Loans in the United Kingdom with Lessons for the U.S. System”