The Student Loans Company (SLC) has reported that £360 million remains outstanding in repayments from graduates originating from European Union countries who studied in England. Government data indicates that nearly 44,000 EU nationals living abroad failed to make any student loan repayments over the past year.

As of the end of August, there were 103,400 EU graduates with outstanding student loans who were earning above the applicable repayment threshold while residing outside the UK. However, 42 percent—approximately 43,700 individuals—did not make any repayments during the previous 12 months.

Graduates who intend to live outside Britain for more than three months are required to notify the SLC and must declare their income via an online system. Repayments are then calculated according to the borrower’s country of residence, with thresholds adjusted for the local cost of living. Unlike British graduates who have repayments automatically deducted from their paychecks, EU students and British nationals working abroad must proactively report their earnings to ensure repayments are made.

Following Brexit, access to new student loans for EU students without settled or pre-settled status was discontinued in 2021. Nonetheless, those who previously obtained loans before this cut-off remain obligated to repay their debts.

Critics have expressed concern over the current repayment system, arguing it facilitates non-repayment by borrowers living overseas. Chris McGovern of the Campaign for Real Education described the situation as an exploitation of British taxpayers, suggesting that providing loans to foreign nationals incentivizes a lack of repayment.

In response, the Department for Education emphasized its commitment to recovering owed funds. Junior Minister Josh MacAlister stated that both the public and government expect these debts to be repaid, and pointed to ongoing investments in the SLC’s debt recovery capabilities.

An SLC spokesperson noted that borrowers sign declarations agreeing to the loan terms, including obligations to maintain contact. Failure to update the SLC results in a default repayment rate applied to the account, which the company pursues through established recovery processes. The spokesperson added that the SLC is engaged in a three-year transformation program aimed at enhancing its ability to collect outstanding debt, working closely with government partners to strengthen enforcement measures.