International Students Failing To Repay UK Debts

Fri, 27 Feb 2009

Nearly seven in ten foreign students are failing to repay student loans they took out while studying at universities in the UK, according to new figures.

Data from the Student Loans Company (SLC) shows that 2,240 students from other EU countries were due to begin paying back their loans over the last two years worth about £3.8m, but 1,580 remain unaccounted for.

According to the SLC records, 59 per cent of those due to start repayment in 2007 failed to do so, while last year the number rose to 70 per cent.

David Willetts MP, Shadow Secretary of State for Innovation, Universities and Skills, said: "It's very important that the Student Loans Company is as energetic in collecting debt built up by students across the continent of Europe as they must be in collecting debts from students in Britain."

"The evidence that we're getting already shows that the SLC is being shockingly ineffective in collecting money that's owed."

The government insisted the SLC is doing everything it can to track people down, but said the lack of a repayment mechanism outside of the UK means the organisation has to rely on overseas students informing it of their earnings and making their own payment arrangements.

Students from EU countries have been eligible for low interest loans to pay for their tuition fees since 2006, and are entitled to the same allowances as those in the countries in which they study.

The SLC claim some 46,000 loans worth £130m have been taken out by international students over the past three years.
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