uk pound british money
Australia tops the list of countries where UK student loan borrowers have gone missing. Clément Proust/https://images.pexels.com/photos/34002434/pexels-photo-34002434.jpeg

The Student Loans Company (SLC) is attempting to trace more than 121,000 borrowers living overseas who collectively owe around £3.4 billion ($4.57 billion) in outstanding student loan balances, according to newly released figures. The government-owned organisation says it is working to locate former students whose current income and residency details are unknown, making it difficult to determine whether repayments are due.

Unlike graduates living in the UK, whose repayments are generally collected automatically through the tax system, overseas borrowers are required to keep the SLC informed of their income and location. Without that information, the organisation cannot accurately assess repayment obligations.

The figure includes borrowers across dozens of countries, with Australia, the United States and several European nations accounting for some of the largest groups of former students whose whereabouts or income details are currently unknown. The SLC has stressed that not all of those being traced are necessarily required to make repayments, as some may be unemployed, studying, receiving benefits or earning below repayment thresholds.

What the £3.4 Billion Figure Means

The 121,000 borrowers being traced collectively owe around £3.4 billion ($4.57 billion) in outstanding student loans.

Among those being traced are approximately 42,000 borrowers linked to European Union countries with outstanding balances totalling around £893 million ($1.20 billion). The SLC said the figures do not represent confirmed cases of repayment avoidance and include borrowers who may not currently be required to make repayments.

Where Borrowers Are Located

SLC data shows that around 15,000 borrowers being traced are believed to be in Australia, while approximately 7,600 are linked to the United States.

The figures also include around 5,500 borrowers in Spain and a similar number in Ireland, as well as roughly 5,300 in the United Arab Emirates. Smaller groups are believed to be living in countries including China, Bulgaria and Romania.

Borrowers being traced are spread across dozens of countries, from Australia and the United States to Europe, Asia and the Middle East.

Why the SLC Is Trying to Trace Them

The SLC has long maintained that moving abroad does not remove a borrower's obligations under their student loan agreement. Anyone leaving the UK for more than three months is required to provide details of their income and employment so that repayment arrangements can be assessed.

Overseas borrowers must provide income information directly to the SLC so that repayment obligations can be calculated under the relevant repayment thresholds.

The SLC said that more than 90 per cent of customers had a verified residency and employment status during the 2024-25 financial year.

What Happens if Borrowers Do Not Respond

Borrowers who fail to provide updated income information can face additional action from the SLC, including the application of fixed repayment schedules based on the country in which they are believed to reside.

The organisation says it continues efforts to establish borrowers' locations and financial circumstances where details are missing. A spokesperson said all customers are required to comply with the terms and conditions of their loans and to notify the SLC if they plan to live overseas for three months or more.

The SLC said efforts to verify borrowers' details will continue, with more than 121,000 overseas accounts and £3.4 billion ($4.57 billion) in outstanding balances currently subject to tracing activity.

Writer's pick