Denmark might employ personal companies to recover foreign student loans

Money borrowed by foreign trainees forms 80 million kroner (10.7 million euros) of the total 155 million kroner (20.1 million euros) owed to Denmark for state trainee loans (statens uddannelsesstøtte-lån, SU-lån), news firm Ritzau reports.

EU nationals who study in Denmark are entitled to both the Danish state trainee grant and the equivalent repayable loan, supplied they satisfy certain requirements (such as working for 10-12 hours weekly).

The Danish state is yet to get a large quantity of payment on the loans given to international trainees, it was reported last year.

“It is a growing problem that immigrants that receive SU loans leave Denmark and don’t pay. That is just unfair. That’s why the government is acting versus it,” tax minister Karsten Lauritzen said to Ritzau.

The government wishes to establish an agreement with the EU over the recovery of debts, however will look for bilateral deals with individual nations in the shorter term, writes the news bureau.

The federal government statement comes as parliament on Friday is set to assess a proposal by the anti-immigration Danish Individuals’s Celebration (DF) to entirely bar foreign nationals from getting SU.

” [State] loans to foreign trainees need to be stopped,” DF’s education spokesperson Jens Henrik Thulesen Dahl told Ritzau.

Thulesen Dahl rejection the tip that such a procedure would break an agreement with Nordic neighbours Sweden and Norway, who operate similar trainee financing systems, enabling Danish students to study in the other Scandinavian nations.

“No. We have been informed that we can not recuperate debt. Trainees can return house without paying back what they have actually loaned. We are stating: ‘that traffic needs to be stopped,” he said.

Foreign nationals who have actually taken out SU loans are required to supply information of their new address when leaving Denmark. The federal government prepares to contract private debt collector to assist Danish authorities recover the financial obligations.

Presently, cash owed by foreign nationals living beyond Denmark can only be recuperated if the debitor pays voluntarily.

The federal government desires the country’s Financial obligation Firm (Gældsstyrelsen) to focus on recuperating foreign SU loans from July 1st, Ritzau reports.

According to Ritzau’s report, the government is looking for bilateral contracts with Germany, Sweden and the Netherlands, who have equivalent systems to Denmark, as well as better coordination with the other Nordic countries.

The Nordic nations have the greatest variety of residents with unsettled SU financial obligations, inning accordance with the report.

Denmark intends to increase efforts to recuperate state trainee loan debts owed by foreign residents, the Ministry of Taxation has said.