Student loans: thousands of Europeans ‘failing to repay debts’

The Telegraph is reporting that the National Audit Office has warned the total university student loans bill will balloon to £200bn within 30 years as thousands of EU students are avoiding repayments…

Almost half of students from mainland Europe may be failing to repay taxpayer-backed loans amid warnings of a £5 billion black hole in the public finances.

A report by the National Audit Office found that around 18,000 students from EU member states who took out Government loans for English university courses are in arrears or failing to provide earnings information.

It represents around 40 per cent of the total number of EU students who are eligible for repayments after being given taxpayer funding for degree courses.

In all, European students are believed to be three times more likely to be avoiding repayments than those from Britain – partly because cash cannot be collected through the tax system in foreign countries.

The disclosure came as it emerged that a total of 417,000 students have borrowed money but are failing to make repayments. In most cases, the Government does not hold enough information about them.

Collectively, around £5.7bn of public money is unaccounted for in the English student loans system, figures show.

The NAO warned that the Department for Business, Innovation and Skills was failing to “secure value for money” in the way loans are collected…

More at:  Student loans: thousands of Europeans ‘failing to repay debts’

This sounds a bit of an expensive mess – any thoughts on what’s happening? Please share in the comments or on twitter… 

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Comments

  1. riverstour

    SchoolsImprove This was pointed out to BIS as a nailed down certainty at the time. Not sure why they didn’t listen.

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