New American exchange students starting at Lund University can no longer receive student loans through the U.S.’ Federal Student Aid Program. As a result, students must now seek loans from other sources, such as private banks, which come with much higher interest rates.
– Lund University really put us in a tough position last year, says American exchange student Tyler Radenbaugh.
After four decades of partnership, Lund University’s American students are now facing a financial hurdle: the loss of eligibility for loans through the U.S. Federal Student Aid program. This policy change has left many students scrambling for alternative funding sources, threatening their ability to continue their education abroad.
– I speak for all the American students here when I say that Lund University really put us in a tough position last year, because we’re no longer eligible to receive U.S. Department of Education loans to come to Lund, says Tyler Radenbaugh, an American exchange student.
The change came shortly after Tyler Radenbaugh was accepted into his program and received a scholarship to cover his tuition. According to him, American students now have to apply for loans through private banks, which have much higher interest rates compared to loans from the U.S. Department of Education.
– That was immediately a big financial problem for me. I am lucky enough to have enough savings to cover most of my living expenses, and then I have tuition, with a scholarship that covers the tuition.
– But for U.S. students, they rely on those loans, and to have the cost of those loans essentially double because of the higher interest rate is super problematic, he explains.
According to Tyler Radenbaugh, there has been a policy change that prevents him from applying for student loans through the U.S. Department of Education. However, it remains unclear who is responsible for the change.
– I mean, there’s kind of a disagreement between the university and the U.S. Department of Education about who is at fault, and they’re kind of pointing fingers at each other.
Lund University officials point to new regulations introduced by the U.S. Department of Education in 2020 as the root of the problem. According to Maria Lindblad, Process Leader for Strategic Recruitment at Lund University, these changes have created significant challenges for Lund and other European institutions.
– Unfortunately, they have changed the rules in the U.S., which means that Lund University and other Swedish and European institutions can no longer meet the requirements, says Maria Lindblad.
The regulations require foreign universities to meet stricter criteria, including documentation proving their status as public or private institutions. Lund University, caught between definitions, is struggling to fit into either category under the updated rules.
– This has been an incredibly long process that we have been struggling with, and the Swedish Embassy is involved, as well as the U.S. Department of Education. The issue has been raised at a national level, and efforts are being made to address it directly with the U.S. Department of Education. They understand the problem, but unfortunately, we are currently at an impasse, says Maria Lindblad.
Lundagård has attempted to contact the U.S. Department of Education for a comment but has been unsuccessful.
