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November 25, 2005

College graduates who default on student loans will be penalized

UK graduates who don't pay their school loans "will go on a credit blacklist". This will happen only if the Student Loans Company (SLC) which issues student loans gets its way. As it stands today, the SLC can not "identify graduates to banks and other financial lenders if they default on their loans."

Can you believe that? In the US the student loans will show on your credit report in a hurry, and don't you dare to default. Not even bankruptcy would save you in the past. Now with the recent reform, bankruptcy is useless in most cases anyway. But in Britain, at least for now, you could eat the cake and have it too.

Another thing is that "thousands of foreign students may be able to escape their obligations .. safeguards are still not in place for chasing up bad debts in the other EU countries ..." Now I don't know of any foreign student who can get a student loan here in US, do you? That's the Europe for you ...

Posted in Student Loans at November 25, 2005 11:57 PM

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