Thousands of foreign students have fled the UK without repaying nearly £900 million in student loans, according to new data from the Student Loans Company (SLC). The statistics reveal that more than 42,000 former university students from across Europe have gone missing after completing their studies in Britain.
Outstanding Debt Reaches £3.4 Billion
Unlike in the UK, where tax records can be used to locate missing graduates, officials are unable to track tax records abroad to recover the funds. The data shows that out of 121,000 former students with outstanding loans worth £3.4 billion—both British and foreign—15,000 have moved to Australia, 7,600 to the United States, and around 5,500 to Spain and Ireland. Additionally, there are thought to be 5,300 graduates in the United Arab Emirates, 1,500 in China, 3,500 in Bulgaria, and 3,500 in Romania.
SLC Warns Against Evasion
The SLC has repeatedly stated that moving abroad is not a way to escape repayment of student loans. Loans are used to cover tuition fees and living costs while attending university, and debts become repayable after the student finishes their studies. However, not every former student is eligible to pay back their loans; 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."
