Almost £1billion of unpaid student loans is outstanding as graduates fail to repay debt
A BILLION pounds of unpaid student loans is outstanding as brainy students aren’t repaying their debt.
Sixty thousand graduates who studied in the UK have left officials desperately trying to reclaim the cash.
Officials have revealed that 42,000 home students have disappeared off the radar owing £758 million – around £18,000 each.
There are a further 18,000 ‘missing’ students from EU countries who also owe £214 million.
The majority of these may be travelling or living abroad and have failed to update the Student Loans Company with their details.
Over the past four years the number of missing UK graduates has almost doubled from 22,000.
There are currently 8.1 million people who have taken out loans with the SLC. A Parliamentary committee said last year that its total loans could grow to over £1 trillion over the next twenty five years.
British universities and our incompetent student loan system have created a golden age for swindlers
Christopher McGovern, Chairman of the Campaign for Real Education
Christopher McGovern, Chairman of the Campaign for Real Education, said: “British universities and our incompetent student loan system have created a golden age for swindlers.
“Meanwhile, UK schools claim that for them the money has run out.”
A spokesperson for SLC said: “Only 4% of current Student Loans Company repayment customers are overseas and the vast majority of these fully comply with the terms of their loan.
“All borrowers sign terms and conditions at the outset requiring them to inform SLC if they are overseas for more than three months.
“Wherever possible, the small percentage of graduate borrowers who fail to do this are pursued by SLC and, if appropriate, by debt collection agencies acting on our behalf.
“Wherever practical, this remains true on a global perspective.”
Labour MP Chris Evans, who sits on the Commons’ Public Accounts Committee, said: “Efforts must be re-doubled to ensure graduates don’t disappear off the radar and fail to fulfill their commitments.”
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