Thousands of foreigners default on their loans / News / The Foreigner

Thousands of foreigners default on their loans. 430 million kroner remains uncollected. Getting a study loan from the Norwegian State Educational Loan Fund (Lånekassen) is relatively simple. There are no credit history checks, and all you have to do is to fulfil certain conditions. It’s believed that many foreign students take advantage of this.A challenge According to figures from the Norwegian National Collecting Agency (NCA), foreign citizens have accounted for just two percent of student numbers in Norway in the last few years. At the same time they are the worst offenders when it comes to repaying their study loan.

study, students, loans, laanekassen, foreign, default, unpaid, norway, norwegians



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Thousands of foreigners default on their loans

Published on Tuesday, 3rd November, 2009 at 10:24 under the news category, by Michael Sandelson   .

430 million kroner remains uncollected.

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Photo: Melanie Kintz/Shutterstock Images


Getting a study loan from the Norwegian State Educational Loan Fund (Lånekassen) is relatively simple. There are no credit history checks, and all you have to do is to fulfil certain conditions. It’s believed that many foreign students take advantage of this.

A challenge

According to figures from the Norwegian National Collecting Agency (NCA), foreign citizens have accounted for just two percent of student numbers in Norway in the last few years. At the same time they are the worst offenders when it comes to repaying their study loan.

“These types of arrears are extremely difficult to collect in relation to debtors who live in the Nordic countries. If they move back to their home country without giving a forwarding address, it’s hard enough just finding them,” Per Waage, director of the NCA tells Aftenposten.

Equally guilty

“We’re no worse than anyone else. A deal is a deal, but perhaps it would be easier to understand what Lånekassen wrote if they sent their letters in other languages than just Norwegian,” says Master’s student Moustapha Babikir from Chad.

He goes on to say that he knows several African students who return home and take over financial responsibility for a large family; something that makes bills from Norway easier to put at the bottom of the pile.

But although almost 400 people living in Africa owe an average of 200,000 kroner each, Norwegian students account for almost four billion that has never been repaid.



Published on Tuesday, 3rd November, 2009 at 10:24 under the news category, by Michael Sandelson   .

This post has the following tags: study, students, loans, laanekassen, foreign, default, unpaid, norway, norwegians.





  
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