Thousands of European students who borrowed a total of £893 million to finance their studies at UK universities have not repaid their loans, according to figures from the Student Loans Company (SLC). The government-owned body is currently attempting to locate approximately 42,000 former undergraduates who have left the country without making repayments.

The SLC has been collaborating with authorities across the European Union to identify and pursue these individuals. While the agency can access UK tax data to track borrowers within Britain, locating graduates who have moved abroad presents significant challenges.

Overall, the SLC is seeking around 121,000 former students with outstanding loan balances totaling £3.4 billion. Among these, close to 15,000 are believed to reside in Australia, 7,600 in the United States, and approximately 5,500 each in Spain and Ireland. Other notable concentrations include 5,300 individuals in the United Arab Emirates, 3,500 in both Bulgaria and Romania, and 1,500 in China.

These loans, which cover tuition fees and living expenses, become repayable once students have finished their courses. However, not all borrowers are currently required to make repayments; some may be unemployed, temporarily between jobs, receiving benefits, or earning below the minimum repayment threshold.

The situation has drawn criticism from groups concerned about the financial burden on UK taxpayers. Callum McGoldrick, investigations campaign manager at the TaxPayers’ Alliance, expressed frustration about the scale of unpaid debts, urging the government to strengthen enforcement measures. Christopher McGovern, chairman of the Campaign For Real Education, called for policy changes including excluding non-UK students from accessing loans and requiring UK students to provide guarantors for their repayments.

Responding to the concerns, an SLC spokesperson emphasized that most borrowers comply with repayment obligations. The spokesperson noted that in the 2024-2025 period, more than 90 percent of customers had verified residency and employment information. They added that loan recipients are made aware of their responsibilities, including the need to inform the SLC if they plan to live abroad for three months or longer and to provide income details to ensure repayment arrangements are correctly managed.