Thousands of foreign students have fled the UK without paying nearly £900 million in loans. New statistics from the Student Loans Company (SLC) have revealed that over 42,000 former university students from across Europe have gone missing after studying in Britain.
Unlike in the UK, officials are unable to track tax records to locate missing graduates abroad. The data shows that, out of 121,000 former students with outstanding loans worth £3.4 billion, both British and foreign, 15,000 of them have moved to Australia, 7,600 to the United States and around 5,500 to Spain and Ireland. There are also thought to be 5,300 graduates in the United Arab Emirates, 1,500 in China, 3,500 in Bulgaria, and 3,500 in Romania. The SLC has repeatedly stated that moving abroad is not a way to escape repayment of student loans.
SLC loans are used to cover students’ tuition fees and living costs whilst they attend university. The debts become repayable after the student finishes university.
However, not every former student is eligible to pay back their loans. For example, some may be out of work, between roles, not earning enough to meet the minimum repayment threshold or claiming benefits.
Callum McGoldrick, investigations campaign manager at the TaxPayers’ Alliance, said: “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.”
Christopher McGovern, chairman of the Campaign For Real Education, added: “Taxpayers are being robbed. Non-UK students should be excluded from loans altogether, and UK students should be required to provide a guarantor of repayment, such as a parent.”
An SLC spokesman said: “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% 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.”