UK authorities are attempting to trace around 42,000 former students from European countries who owe an estimated £893 million in unpaid student loans, according to the latest figures released by the Student Loans Company (SLC).
The figures highlight the growing challenge of recovering student debt from borrowers who studied in the UK and later moved abroad.
Over 121,000 Overseas Borrowers Being Tracked
According to the Student Loans Company (SLC), it is currently tracking:
📊 121,000 borrowers worldwide
with outstanding student loan balances totaling:
💷 £3.4 billion
Many of these individuals studied at UK universities using government-backed loans for tuition fees and living expenses before relocating overseas.
Thousands of Borrowers Living Abroad
The SLC said borrowers with outstanding balances are spread across several countries, including:
- 🇦🇺 Australia – around 15,000 borrowers
- 🇺🇸 United States – around 7,600 borrowers
- 🇪🇸 Spain
- 🇮🇪 Ireland
- 🇦🇪 United Arab Emirates
- 🇧🇬 Bulgaria
- 🇷🇴 Romania
- 🇨🇳 China
Officials said recovering loans from overseas borrowers is considerably more difficult than within the UK.
Overseas Tracking Presents Challenges
Inside the UK, authorities can use tax records to monitor earnings and repayment obligations.
However, tracking graduates who move abroad is more complex.
To improve enforcement, the SLC said it has established links with agencies and authorities in Europe and other countries to help verify residency and employment information.
Not All Borrowers Are Required to Repay Immediately
The agency clarified that not every borrower with an outstanding balance is currently required to make repayments.
Some graduates may:
- Be unemployed
- Earn below repayment thresholds
- Be temporarily exempt under repayment rules
Debate Over Unpaid Student Debt
Critics have called for stronger enforcement measures, arguing that unpaid student loans ultimately place additional pressure on taxpayers.
The SLC, however, said the majority of borrowers continue to comply with repayment requirements.
According to the agency:
📊 More than 90% of customers verified their residency and employment status during the 2024-25 financial year.
Moving Abroad Does Not Cancel Student Loans
The Student Loans Company reiterated that relocating overseas does not exempt graduates from repaying their loans.
Borrowers remain responsible for repayments if their income exceeds the applicable repayment threshold in their country of residence.
The latest figures underscore the challenges governments face in managing international student debt recovery as increasing numbers of graduates pursue education in one country and careers in another.
