CAMBRIDGE, MA - JUNE 4: Harvard University student Eli Rosenbaum attends commencement ceremonies June 4, 2009 in Harvard Yard in Cambridge, Massachusetts.

Undergrads Around the World Face Student Loan Debt

Student debt is not unique to the United States, but financial aid systems vary around the world.

CAMBRIDGE, MA - JUNE 4: Harvard University student Eli Rosenbaum attends commencement ceremonies June 4, 2009 in Harvard Yard in Cambridge, Massachusetts.
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When borrowers reach that threshold, they pay a flat 9 percent of any income more than 21,000 pounds until the loan is paid in full or forgiven.

"In Great Britain – one of the major economies that has a similar system – 98 percent of borrowers are meeting their obligations," U.S. Rep. Tom Petri of Wisconsin said in an April statement announcing the Earnings Contingent Education Loans Act. The bill calls for universal income-based repayment on all federal student loans and automatic payments via employer withholding.

"It's pretty simple if you think about it," Petri said. "When students graduate from college, traditionally they will make less. And then as they progress in their professional career they'll earn more. The repayment schedule should follow this trend so that borrowers pay less early on and more as they earn more."

Get more U.S. News coverage of the Top World Universities.


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