Thousands of foreign students vanish from the UK – failed to pay nearly £900m in loans | UK | News
Thousands of foreign students have fled the UK without paying back nearly £900 million in loans. More than 42,000 former university students across Europe have gone missing after studying in Britain, new statistics from the Student Loans Corporation (SLC) have revealed.
Unlike the UK, authorities are unable to trace tax records to locate missing graduates abroad. The data shows that of 121,000 former students, both British and foreign, with £3.4bn of outstanding loans, 15,000 moved to Australia, 7,600 to the United States and around 5,500 to Spain and Ireland. It is also thought that there are 5,300 graduates in the United Arab Emirates, 1,500 in China, 3,500 in Bulgaria and 3,500 in Romania. SLC has repeatedly stated that moving abroad is not a way to avoid student loan repayment.
SLC loans are used to cover students’ tuition fees and living expenses while they attend college. Debts become payable after the student graduates from university.
However, not every former student has the right to repay their loans. For example, some may be unemployed, between roles, not earning enough to meet the minimum repayment threshold, or claiming benefits.
Callum McGoldrick, research campaign manager at the TaxPayers’ Alliance, said: “Taxpayers will be furious to see billions of dollars of overseas student loan debt disappearing as they foot the bill. Ministers must get serious about enforcement or hard-working taxpayers will continue to pay the price.”
Christopher McGovern, chief executive 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 repayment guarantor such as their parents.”
An SLC spokesperson said: “The vast majority of customers comply with the terms and conditions of their loans and repay through the correct channel. “More than 90% of customers had verified residence and employment status between 2024 and 2025.
“Everyone needs to comply with the terms and conditions of their loan and they need to be aware of their responsibilities, including letting us know if they plan to live abroad for three months or more and providing income details so correct repayment arrangements can be made.”
