Student loan company seeks 42,000 overseas graduates owing £893 million

The Student Loans Company is attempting to locate more than 42,000 former European students who left without repaying loans totaling £893 million. The government-owned company has contacted authorities in other countries to trace the borrowers. The newest figures show the company is also searching for a larger group of 121,000 former students with outstanding loans worth £3.4 billion.

Of that total, around 15,000 are thought to have moved to Australia, 7,600 to the United States, and 5,500 each to Spain and Ireland.

Tracking challenges Tracking graduates overseas is more difficult than within the country because officials can use tax records domestically but lack similar powers abroad. The company has coordinated with authorities across the European Union in an effort to locate the missing students.

The company has repeatedly stated that moving abroad does not remove the obligation to repay student loans. Loans cover tuition fees and living costs while students attend university, and repayment begins after graduation.

Eligibility and repayment An SLC spokesman said the vast majority of customers comply with loan terms and repay through the correct channel. In 2024 to 2025, more than 90 per cent of customers had a verified residency and employment status. The spokesman added that all borrowers are required to inform the company if they plan to live overseas for three months or more and to provide income details for repayment arrangements.

Some former students may not be eligible to repay because they are out of work, between roles, or earning below the repayment threshold.