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In the US, it's very risky. If you default on your loan, your credit will be terrible, and your credit determines the quality of your life. It determines what h

In the US, it's very risky. If you default on your loan, your credit will be terrible, and your credit determines the quality of your life. It determines what house you can get and whether you can get internet service. You have to pay your loan regardless of whether you have a job or not, or whatever your financial condition is. Exceptions can be made (you go through a loan handler, so it's whatever they say) but overall it's a risk. It's just a risk that pays off for most people. That UK system sounds pretty wonderful.

jcampbell1 12y ago
The US has a similar system to the UK called Income Based Repayment. It is not the default option, but I think it works similarly in principle.
- praxulus 12y ago
  I believe that can only be used on government loans, not private loans. Yet another reason to avoid private student loans if at all possible.
  - sillysaurus3 12y ago
    If you want to go to university, and you're not from a privileged economic background, avoiding private student loans isn't really possible, unfortunately. Doubly so, because people from disadvantaged economic backgrounds have no idea how to find government money to help them attend college in the first place. And government loans usually don't cover all of the expenses related to university anyway, so private loans become necessary.
    - k-mcgrady 12y ago
      >> "And government loans usually don't cover all of the expenses related to university anyway, so private loans become necessary." Again, not in the UK. Students here are given two loans. One to cover tuition and a separate one for cost of living. It's not much but it's enough for a student to get by.
    - coryrc 12y ago
      Which is why we have community colleges, which are heavily subsidized, focused mostly on paying careers, and affordable to people making little money.
  - wolfgke 12y ago
    Why don't you (or lots of US citizens) lobby for introducing a law that student loans only have to be paid back as long as you earn a decent amount of money (as in the UK according to a post higher in the tree)?

jcampbell1 12y ago

The US has a similar system to the UK called Income Based Repayment. It is not the default option, but I think it works similarly in principle.

praxulus 12y ago
I believe that can only be used on government loans, not private loans. Yet another reason to avoid private student loans if at all possible.
- sillysaurus3 12y ago
  If you want to go to university, and you're not from a privileged economic background, avoiding private student loans isn't really possible, unfortunately. Doubly so, because people from disadvantaged economic backgrounds have no idea how to find government money to help them attend college in the first place. And government loans usually don't cover all of the expenses related to university anyway, so private loans become necessary.
  - k-mcgrady 12y ago
    >> "And government loans usually don't cover all of the expenses related to university anyway, so private loans become necessary." Again, not in the UK. Students here are given two loans. One to cover tuition and a separate one for cost of living. It's not much but it's enough for a student to get by.
  - coryrc 12y ago
    Which is why we have community colleges, which are heavily subsidized, focused mostly on paying careers, and affordable to people making little money.
- wolfgke 12y ago
  Why don't you (or lots of US citizens) lobby for introducing a law that student loans only have to be paid back as long as you earn a decent amount of money (as in the UK according to a post higher in the tree)?