Article 50

So much unpaid debt!

Daphnedill

Clearly was confused.

She thought EU students needed three years UK residency to be entitled to pay home student fees.

She is wrong. They are all entitled and require no prior residency.

See my link above.

rosesarered said
"So much unpaid debt!"

And bear in mind this is just England! The situation must be worse in Scotland where they dont even pay tuition fees!
And this was 2014. God know what its costing Britain now!

European students are failing to repay a record £38m after taking out taxpayer-funded loans to study at universities in England, it has emerged.
New figures show that arrears accumulated by students from EU member states have soared three-fold in just two years, prompting fresh concerns over the system used to chase graduate repayments.

In all, more than one-in-eight EU students living abroad are officially failing to repay government loans, it was revealed.

It also emerged that the total amount of money handed to students from outside Britain has ballooned by more than £200m to £686.3m in the last 12 months alone

What a 'benefit' eh?

The government (Student Loans Company) does not 'lose money' if loans aren't paid back. It makes money from the interest payments over a 30 year period. Repayment of the original loan is a bonus.

The SLC has recently beefed up its overseas collection unit. I'm sure it is still possible for a determined fraudster to disappear somewhere in the world. However, the ex-student is likely to have his/her passport seized if he/she tries to return to the UK and can be traced via National Insurance number if he/she tries to work. The SLC also has arrangements with other countries to report income.

My DD is currently having hassles with the SLC, because she went on holiday for three months to South America. Somehow or other, it knew that she'd flown to Peru.

Universities have caps on the number of UK students they can admit with some exceptions for very high-achieving students if they want. Overseas students aren't covered by the cap, so there wouldn't be more places for UK students if EU students stop applying.

Daphnedill is not confused

Who pays the interest over 30 years if the student doesn't?

My thoughts exactly Ana

No-one pays the interest if the loan is never paid back. It's a very dodgy area. It has proved less successful than originally planned, more expensive and more difficult to administer. Is it losing money? Who knows? the costs and the unpaid loans haven't yet reached their full potential.

daphnedill is still confused?

It would seem so.

Graduates do pay interest, even if the original loan is never paid back. The amount they pay out of their incomes is almost all interest.

Student loans aren't like other loans such as a mortgage. They are more like a graduate tax.

The reason so little is being paid back at the the moment is because we have had wage stagnation, particularly in the public sector, which is where many graduates work. If there is wage inflation in the future, more will be paid back, but inflation causes problems in other areas.

No, daphnedill is not confused!

Anyway, daphnedill has work to do #playgroundbullytactics

I thought we were talking about students who just disappeared at the end of their course, and didn't make any interest payments, never mind the capital.

Well, you have said it thrice ( like Humpty Dumpty) so it must be true!

That was to dd above.

Yes, we were talking of the EU students who failed to make any repayments.

Wondering how much unpaid student loans by UK citizens who emigrate.
£38k is a tiny amount when compared to the amount of money that the UK earns by welcoming foreign students. They are, effectively an export. As well as their feed they spend a lot of money in uk businesses.
One estimate of this total benefit to UK income is £14 billion. £4 billion of this was fees.
Maybe this link will help you to understand better.

institutions.ukcisa.org.uk/Info-for-universities-colleges--schools/Policy-research--statistics/Policy-and-lobbying/Impact-of-international-students/

Very sensitive this morning daphnedill! I for one am simply trying to get to the bottom of the question of whether any part of the £38m of student loans handed out to European students has been repaid.

£38m not k, Jess.

That is for international students though Jess where figures are lumped together with EU and non EU students, non EU paying a huge amount more.It also mentions especially India China and USA when talking of monies.

That should say "fees" not feed

Is this another serious question or just musings.

Sorry ......not sure what happened there as I was on an entirely different thread and the page quivered and I was back here!

Yes indeed its all foreign students but the EU students spend their money the same and non EU. So even if you are bored with bashing on about the fees - they make a substantial contribution to that remaining £10billion. And remember that the vast majority do not have a student loan. (Are we bored with that red herring yet?)