‘Runaway’ students who owe UK £1billion in loans

MORE than £1billion in student loans is owed by university graduates, who have disappeared around the globe without paying up.

The figure includes £795million on owed by 40,000 “vanished” UK students, dents, who did a degree in this country try then went abroad and lost con- tact with the authorities.

Many are from other European countries who took advantage of the loan system to fund their education at UK institutions. The Student Loans Company confirmed it is trying to trace a total of 60,000 former students who owe £1.04billion.

Officials are trying to link up with EU authorities and other r governments around the world to help them track down missing graduates and force them to pay back their loans. The SLC has always said that going abroad would not be a way of avoiding paying off a student debt.

How However, last year the outstanding debt rose by about £1million ev every five days. And it is feared th the problem of UK student d debtors disappearing abroad will only get worse as more graduates saddled with £9,000-a-year tuition fees start filtering through the system. The SLC also admitt ted it has lost track of 20,000 E EU students who received loa loans to study in the UK but have now vanished abroad, owing a total o of £244million.

Not all t these former students – who the SLC calls “unverified customers” – will be liable to pay back their loans as some may not be working, may be on benefits or not earning enough to pay back their debt.

Christopher Mcgovern, chairman of the Campaign for Real Education, said: “Runaway student spongers are taking the British taxpayer for a ride. For years EU rules, in particular, have made us into international mugs when it comes to student loan handouts.

“We are being fleeced and it is time for universities to act responsibly. Before students are admitted on to courses there should be legal guarantees that any loans will be repaid.

“If necessary parents should be required to pledge surety of repayment.”

An SLC spokesman said: “Unverified customers are those whose current circumstances need to be established to determine whether or not they are liable to repay.

“When a customer moves overseas, they have three months to update us of their circumstances. The vast majority comply fully with the terms and conditions of their loan.”