To ask the Secretary of State for Education, what steps the Government takes to reclaim student loans from graduates from non-UK EU countries who fail to repay those loans.
Answered on
8 March 2017
The Student Loans Company (SLC) has arrangements in place to collect repayments from borrowers who move away from the UK. SLC establishes a 12 month repayment schedule based on the borrower’s income and provides information on the methods of repayment available.
SLC sets up fixed repayment schedules for borrowers who do not remain in contact and will place those borrowers in arrears. Further action, including legal action, can then be taken to secure recovery.
The Department published a Joint Repayment Strategy in February 2016, which sets out how action will be taken to trace borrowers and act to recover loans where avoidance or evasion is identified. This publication can be found at https://www.gov.uk/government/publications/student-loan-repayment-strategy.