Student loans body still owed £1.2bn by those who left UK
THE Student Loans Company is chasing £1.2billion still owed by people who have left the UK, it revealed yesterday.
It has admitted that 78,700 ex-students who owe money have now left the UK, leading to fears that taxpayers may eventually have to pick up the bill.
About 21,800 were EU students who got a loan to study at a UK university – but left the country with their debt unpaid.
Former students who owe the Government an average of £15,000 each are scattered across the globe, with outstanding accounts registered in Malawi, Uganda, Iraq and Argentina.
In the UK, the company has an agreement with the taxman so that repayments are taken automatically from former students’ pay packets once they start earning an agreed amount.
Obligation
The company’s accounts show that £76billion is owed by around five million former students who have taken out loans to cover tuition fees and living expenses.
It is estimated that the total outstanding student debt could reach £1trillion by 2035.
Today’s graduates can be saddled with tuition fees of about £9,000 per year.
It is thought about 400 students move abroad every month, owing a combined £8.5million.
It is feared that many students who feel overwhelmed by their debts may choose to live abroad in the hope they can avoid being chased for the money.
John O’Connell, of the TaxPayers’ Alliance, said: “Taxpayers will be concerned that such huge sums of money are not being repaid.
“The SLC has to get a handle on its processes and universities need to do more to ensure that students are serious about study as opposed to picking up cheap loans they have no intention of paying back.
“The SLC has to remember that when money isn’t recovered, it is taxpayers who are left to pick up the bill.”
An SLC spokesman said: “The vast majority of borrowers meet their obligation to repay their loans when their income reaches the payment threshold.”
Regarding the students who have left the country, he said: “In this case, 49,000 students have yet to earn enough to start repaying. When they do we expect them to meet the repayment terms they signed up for.
“SLC is committed to protecting the public purse and recovering every penny of taxpayer monies owed.”
The countries which the SLC believes hold the largest number of students failing to make any payments against debts include Australia, 9,900, Cyprus, 5,900, US, 5,800, France, 4,200, Germany, 3,400, Spain, 3,300, Canada, 2,600, and New Zealand, 2,600.
IT’S OUR PM THERESA MAY...OR MAYBE IT’S NOT
DOUBLE take... no this isn't Theresa May, it's comic Tracey Ullman.
The 57-year-old satire star gives her impression of the Prime Minister on BBC One tonight.
Tracey Breaks The News will also feature her playing German leader Angela Merkel and the SNP's Nicola Sturgeon.
The actress said: “There's never been a better time to be imitating world famous political women.” She described the PM as “my home girl newbie”.
The show goes out at 9.30pm.