Thousands of university students have departed the United Kingdom without settling their student loan debts, leaving taxpayers to cover the costs. According to data from the Student Loans Company, more than 42,000 former students from European countries have not repaid a total of £893 million that was provided to support their degrees.
Student Loans Company Pursues Outstanding Debts
The Student Loans Company is actively tracking down over 121,000 former students with outstanding loans amounting to £3.4 billion. Among these, approximately 15,000 are believed to have relocated to Australia, 7,600 to the United States, and around 5,500 each to Spain and Ireland. Additionally, 5,300 graduates are thought to be in the United Arab Emirates, 1,500 in China, and 3,500 each in Bulgaria and Romania.
Taxpayers' Alliance Calls for Action
Callum McGoldrick, investigations campaign manager at the TaxPayers' Alliance, expressed outrage: “Taxpayers will be furious to see billions in student loan debt disappearing overseas while they foot the bill. Ministers must get serious about enforcement, or hardworking taxpayers will keep paying the price.”
Student Loans Company Response
An SLC spokesman stated: “The vast majority of customers comply with the terms and conditions of their loan and repay through the correct channel. In 2024 to 2025, more than 90 per cent of customers had a verified residency and employment status. All are required to comply with the terms and conditions of their loans and are made aware of their responsibilities, including the requirement to tell us if they plan to live overseas for three months or more and to provide income details so that the correct repayment arrangements can be put in place.”
This issue highlights the challenges of enforcing loan repayments across international borders, as graduates move abroad for work or lifestyle reasons. The Student Loans Company continues to work on tracking these individuals and ensuring compliance with repayment obligations.
