EU students are failing to repay their loans

pay back student loans 150The number of EU students taking out loans for tuition fees in the UK is on the rise, despite increasing numbers failing to repay them

There has been a rise in the number of EU students taking out loans for tuition fees in the UK and the number not paying them back is also increasing. 45% of students from the European Union countries who were liable to start paying back their loans have disappeared or are in arrears.

Sky News requested the figures last week under the freedom of information act and have learned that only a fraction of the outstanding debts have been reclaimed through the courts. EU students have been able to get loans for higher education in the UK since 2006, and since then the debts for around 19,000 EU students amounts to £47.4m.

The trouble with the repayment is that if they work outside of the EU the Student loans company relies on the cooperation of the graduate giving information about their earnings and making agreements to pay. Many are re-qualifying for repayment and then failing to pay, or have failed to provide their earning details.

With such a bleak outlook on jobs it’s not surprising that so many graduates are failing to repay their loans. This figure also looks set to worsen as recent figures on the number of students applying to go to University are in decline, which means they may top up these places with applicants from abroad.

With tuition fees also increasing many new EU applicants will be borrowing more, and therefore this problem is only going to get worse which will cost the tax payer more than the current £20m that 9,000 EU graduates are avoiding to pay.

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