Auditors urge tougher study-loan rules after repayment problems

Sweden’s National Audit Office wants tougher rules for regaining student finance after poor study results, warning that the current system can leave struggling students with debts they cannot repay.

Project leader Jonas Lundstedt tells TT that roughly three quarters of students refused support later qualify again. Auditors say that route should remain open, but want the government to review how easily students regain access.

Among the studied Komvux borrowers repeatedly refused support, a quarter had annual repayments passed to the Enforcement Authority. Komvux is Sweden’s municipal adult-education system.

The audit also calls for study-results requirements in higher vocational and municipal adult education to be brought closer to those in universities, and for municipalities’ duty to explain the requirements to students to be clarified.

Lundstedt says the rules should give people a second chance without creating a debt trap. The audit does not specify exactly how the requirements for regaining support should change.

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