“In Denmark, it should not be size of your wallet that determines what training you get,” said Østergaard. “With the new credit facility, we are continuing with tradition and give more young people the opportunity to learn at the best educational institutions in the world.”

The policy will make DKK100,000 (US$17,300) in low-interest loans with long repayment available for each applicant. Studies show that the government funding available for university studies covers only 75% of most courses abroad.

“I have a vision that every student shall have an international part of their degree”

Karin Busk Demuth  director of the agency Eurostudy in Virum says the scheme is a “brilliant idea” considering Danish students aren’t accustomed to paying for their studies. “It will give more students the opportunity to study abroad,” she told The PIE News.

Danish students however are concerned some may find it difficult to pay the money back.

Torben Holm, President of the Danish Students Union said: “It is a good policy, because we’d rather have students borrow money from the state at favourable interest rates than the bank. But I would urge the government to complement increased funds with increased debt advice, some will have problems with repayments on such large student loans.”

In 2009-2010, 9,825 Danish students were studying abroad and only 35% of them for a full degree compared to the 24,485 international students at Danish universities, 62% of whom were studying for full degrees.

Østergaard is keen to rectify this imbalance and has prioritised internationalisation of Danish students. “I have a vision that every student shall have an international part of their degree. We know that students having been abroad have better chances in the labour market,” Østergaard told Danish newspaper Berlingske Tidende.

Establishing a new common quality assurance system among Danish Universities and academic recognition of studies abroad are also part of Østergaard’s comprehensive strategic plan for internationalisation of higher education, which he says will be published before the end of 2012.

Earlier this year, Østergaard’s department revealed that there had been a record number of applicants for HE within Denmark – particularly for courses that have good opportunities for employment.