Overseas Students: Loans

Department for Education written question – answered on 8th March 2017.

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Photo of Anne Main Anne Main Conservative, St Albans

To ask the Secretary of State for Education, what steps her Department is taking to ensure that non-UK EU nationals who graduate from UK universities having taken out student loans repay their debts within the agreed timeframe.

Photo of Anne Main Anne Main Conservative, St Albans

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.

Photo of Jo Johnson Jo Johnson Minister of State (Department for Education) (Universities and Science) (Joint with the Department for Business, Energy and Industrial Strategy), Minister of State (Department for Business, Energy and Industrial Strategy) (Universities and Science) (Joint with the Department for Education)

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.

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