Most European/progressive countries other then the US are like that or something similiar. I spent some time in the Czech Republic this summer and their college system is pretty much like that.
The big disadvantage in those kinds of systems is they don't always have as well developed of a community college system/junior college system as we do, thus it is harder for alot of people who get started on college later to do so then it is in the US (I'd say this is the only good thing about our college system..)
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